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.  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 largest of the costs that make up your bill are wholesale costs, these costs can change the most. As a result, your bills can go up or down depending on the current energy market conditions at the time.

Since August 2021 we've seen wholesale costs continue to rise, which has led to the price cap increases.

Who's affected by the price cap?

The price cap applies to all customers on a standard or deemed tariff. 

Latest news and updates about Ofgem's price cap

24 November 2022

Are my bills going to change?

Ofgem's price cap is due to increase again in January 2023.

You'll be protected by the Government's Energy Price Guarantee, which limits what you pay for energy. We are awaiting further detail from the government about how the discount will be applied to individual bills by region and payment type from 1 January. Full details of our new prices will be available from 2 December, and you'll be able to view them in MyAccount.

If you're impacted by this price cap increase, we’ll send comms to our customers from 5 December. There is nothing for you to do right now.

26 August 2022

Ofgem announces what the new price cap will be. Please read the full details in their press release.

4 August 2022

Ofgem announced the price cap would be reviewed four times yearly rather than twice yearly. This means the price cap is set to change next year in 2023, and reviews will happen in January, April, July and October.

What actions do I need to take?

Please don’t just cancel your Direct Debit or ignore your bill. This could cost you more long-term and harm your credit rating. If you need help we're here. Get help and support.

We'd rather you speak to us before cancelling your Direct Debit. If you can't afford your Direct Debit payment amount please contact us to hear about the ways we can help you stay in control

Three good reasons to remain on Direct Debit:

  1. Direct Debit is one of our cheapest ways to pay
  2. If you cancel your Direct Debit your energy unit rates will change too
  3. Direct Debit aims to spread your costs out evenly

Find out how much your energy unit rate will increase if you cancel your Direct Debit.

If you reinstate your Direct Debit within 10 days your energy unit rate will stay the same.

Customers who pay by Direct Debit with regular monthly payments

Customers who pay by Direct Debit with regular monthly payments you may need to take action to make sure your Direct Debit payments keep on track. Go to our help centre for advice on what to do.

Join our customers who are cutting their usage and bills

It's important now, more than ever, to stay in control of your energy. With a smart meter and our free Energy Hub, you'll easily be able to track your energy usage and see where you can save so that you can lower your bills and your carbon footprint.

Smart benefits include:

  • Upgrade your meter at no extra cost
  • Receive more accurate bills, keep in control and view the cost of your energy
  • Get a better idea of where you use energy in your home with Energy Hub(1) 
  • Save up to £70 with our free Energy Hub platform(2). Smart meter required

With energy bills rising - act now to help save you money this winter!

Here are the savings insulation can save you on your bills each year:

  • Cavity wall and loft insulation together can save you up to £1,280 per year on bills(3)
  • Solid wall insulation installed can save you up to £930 per year on bills(4)

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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