All you need to know about the energy price cap

 

  • What is Ofgem's energy price cap?
  • How does the price cap work?
  • How is the price cap calculated?
  • How much is the current price cap & how often does it change?
  • Who's affected by a price cap increase
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What is the energy price cap?

Ofgem, the UK's energy regulator, introduced the price cap in 2019. Ofgem has announced today that the price cap will be increasing by 54%. These new prices will come into effect on the 1 April.

The energy price cap limits your rates for each gas and electricity unit. However, it doesn't set your monthly bill, so your monthly bills will increase if you use more energy.

The cap is based on the costs it makes up to supply your energy. The cap rate is reviewed twice a year, in the winter and spring. As a result, your bills can go up or down depending on the current energy market conditions at the time.
 

What are the new kWh costs for EDF's Standard (Variable) tariffs?

If you're looking to find the Standard (Variable) and deemed gas and electricity kWh rates and standing charges, you can find the new prices in our tariff booklets listed below. Please note that these new prices do not go live for customers already on our Standard (Variable) tariffs until 1 April.

Who's affected by the price cap?

The price cap applies to all customers on a Standard (Variable) tariff or deemed tariff. 

We've taken the difficult decision to increase our Standard (Variable) tariff prices in line with Ofgem's new cap.

We know that this will not be welcome news – but we want to be fully transparent, giving our customers as much notice as possible. So if you're on our Standard (Variable) tariff, we'll be contacting you in the coming weeks to explain how these changes will affect your household bills.

Why has the price cap increased?

Wholesale gas prices have continued to rocket, in the last year they've quadrupled.

Gas prices have risen for a number of reasons including:

  • A rise in global demand for gas as countries emerge from lockdown
  • Restricted gas imports from countries like Russia
  • An expectation in autumn 2021, that it would be a very cold winter which drove prices up further 


UK electricity prices are also under pressure for a number of reasons including

  • Lower wind levels
  • Wholesale electricity prices are linked to gas prices – so when one goes up, so does the other – even if it’s zero carbon electricity


Find out what costs make up your bill

Worried about rising energy bills?

We don't want anyone turning off their lights or heating because they're worried about paying the bills. If you're struggling to pay we can help. Find out the options available

What do I need to do next?

Our Standard (Variable) tariff is the cheapest tariff today, but prices are likely to go up again in October.

Fixed tariffs cost more today but will protect you from future rises. Unfortunately, because of the increase in global wholesale energy prices - whichever one you choose – your bill is likely to go up. We're really sorry about this. All our best prices are available online so we won’t be able to give you a better price if you call.

To help, we can give you a smart meter and access to our Energy Hub for free. This will help you understand how much energy you use, plus give you personalised energy-saving tips and advice.

Want us to alert you when energy prices go down? Then, sign up for our price alert emails, and we'll let you know when this happens.

Save up to £570(1) a year on your energy bills with home insulation

With the cold weather upon us and rising energy prices, we're all looking for ways to save on energy, as well as keep warm this winter. 

Did you know a well-insulated home can cut heat loss by 33%?(2)

As Britain's Best Value Largest Supplier, we're bringing to you the opportunity to buy professionally installed loft and cavity wall insulation.

Advice on what you can do at home to save energy

Read our tips on energy saving at home. Some of these are easy to do and completely free.

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