What is domestic energy?
Domestic energy is the energy used by a household in the form of gas and electric. The amount of domestic energy people used is subjective as it can vary depending on factors such as lifestyle, climate, location, and property type.
What is the domestic energy price cap?
Parliament installed the domestic gas and electricity (tariff cap) act that Ofgem (the UK’s energy market regulator) oversee. The price cap legally ensures that customers are protected by capping their energy costs at a fair price so that suppliers cannot over charge them. The price usually reflects that of the energy market therefore twice a year (in April and October) Ofgem adjust the price cap to reflect it accordingly. The price cap will stand until April 2022 – Where prices are expected to increase.
What are the prices now?
The rates under the price cap also vary by region, but on average, they are currently set at: 4p per kilowatt hour (p/kWh) for gas. 21p/kWh for electricity
What is the price forecast?
Energy bills are forecasted to increase by 51%
Our advice:
As a result of the price forecast, people across the UK are left questioning if now is the right time to move on their energy bills. To answer this question bluntly NO!
Despite the price cap increasing, the principle of it remains, the cap is in place to help you, not work against you. Although there is an increase it will not be beneficial to agree to a new domestic contract as the prices you will be offered are higher now. We urge you to wait it out!
