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What is the energy price cap?

What is the energy price cap?

On 24th May 2024, Ofgem announced its next quarterly update to the energy price cap. For the period 1st July to 30th September 2024, the energy price cap will fall by 7% to £1,568 for a typical dual fuel household* paying by Direct Debit; a drop of £122 over the course of the year – saving over £10 a month.

The price cap explained

The energy price cap sets a limit on the amount that energy suppliers can charge customers on standard variable tariffs for gas and electricity.

While your energy bill can still go up or down depending on how much gas and electricity you use, the price per unit and standing charge will never be above the cap. If you are on a standard variable tariff, the price cap applies regardless of how you pay.

  • Ofgem, the energy regulator, is responsible for setting the price cap every three months with any changes taking effect on the 1st January, 1st April, 1st July and 1st October each year.
  • Once set, suppliers cannot charge more than the relevant cap per unit of gas and electricity.
  • Ofgem base it's calculations on the costs that energy suppliers face such as wholesale energy costs, the costs of building and maintaining the energy network, operating costs and environmental policy costs.

Will the energy price cap affect you?

If you are on one of our standard variable or default tariffs or are a PAYG customer with a prepayment meter, then the energy price cap will automatically apply. If your prices need to increase as a result, there’s no need to contact us. We’ll write to you by letter or email to let you know what your new prices will be  before the change takes place.

If you are on one of our fixed price or flexi tariffs, the price cap does not apply for the duration of the tariff. Check a recent bill or your online energy account if you’re not sure what tariff you’re on.

The price cap only applies to domestic customers.

Is additional support available?

If you need more support, we’re here to help. Please read more about the help and support available to you.

Our phone lines are very busy so if you have a question, please get in touch via webchat (Monday to Sunday, 7am to 11pm) – it’s one of the fastest ways to contact us.

Last updated: 3 June 2024


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