Ofgem lowers energy price cap for Oct 2023

As of October 2023, the Energy Price Cap will fall from £2,074 to £1,923. Changeworks welcomes this reduction but urges greater support for those households struggling with energy bills. The only long-term way to tackle fuel poverty and achieve our net zero targets is by prioritising the retrofit of homes. 

Ofgem recently announced the latest caps on the unit price of energy and the standing charges that energy suppliers can set for their customers. This means that the average household energy bill will drop to £1,923 a year.  

Whilst any reduction in energy bills is good news, costs are still significantly higher than they were prior to the energy crisis. In winter 2021/22, the price cap was set at £1,277/year – almost £650 cheaper than the upcoming cap. Add to this the expected re-raising of the cap in January 2024, and it becomes difficult to see how the October drop will benefit the thousands of Scottish households currently in fuel poverty.  

Changeworks’ Chief Executive Josiah Lockhart said: 

“Even before the energy crisis, we had unacceptable levels of fuel poverty in Scotland. We have some of the least energy efficient homes in Europe, which makes heating them unaffordable. It also means we’re emitting so much more carbon than we need to, with all that heat leaking out through our walls, roofs and windows.”  

One of the most effective things we can do to tackle high energy bills and carbon emissions is the retrofitting of our homes. This means insulating them properly and installing low-carbon heating systems. The Scottish Government must offer more financial support for householders to make these changes. Doing so will protect people against high energy prices and help us meet our net zero targets. 

To find out more about the energy price cap, please visit our explainer page.