All you need to know Ofgem's energy price cap
Our latest update on Ofgem's price cap and what this means for our customers
Ofgem has announced a 12.3% decrease in the price cap from 1 April until 30 June. For an average household paying by Direct Debit for both gas and electricity, the energy price cap will drop from £1,928 to £1,690 per year. This follows a decline in global wholesale prices since the last price cap was set, resulting in a reduction in the price cap. Read Ofgem's press release.
We are aware that this news may be welcomed by many of our customers. However, we understand that the prices are still higher than before the energy crisis and that many customers may be worried about falling into debt, particularly with the ongoing cost of living crisis. We are committed to helping you in any way possible. If you need support during this time, please do not hesitate to visit our help centre for advice.
Key information our customers need to know
- The price cap will drop 12.3% from £1,928 to £1,690. The annual price is based on a typical household(1) that uses gas and electricity and pays by Direct Debit
- If you are on one of our variable tariffs, your prices will be adjusted automatically to new prices on 1 April. There is no need to take any action or call us
- EPG discounts are still in place until the end of March 2024 for prepayment and smart PAYG customers
- Please avoid changing your Direct Debit payments, as we regularly review them to adjust for any changes in the price cap. Modifying your Direct Debit amount before a review may result in debt
- Prepayment customers should see the change in their electricity prices when they top up after 1 April. Gas prices could update on prepayment customers' meters any time from today (after a top-up), but they won't activate until 1 April
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 price cap is currently reviewed every three months, and Ofgem then decides what the new price cap will be set at.
How is the price cap calculated?
The Ofgem price 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, which can change the most. As a result, your bills can go up or down depending on the current energy market conditions at the time.
Costs included in the Ofgem price cap prices
Wholesale costs. Our gas and electricity costs are determined by the prices on the wholesale markets in the UK, which in turn reflect global commodity markets. As with things like petrol, the cost of energy goes up and down with global availability and demand
Network costs. We don't own the electricity wires or gas pipes the energy flows through, so we must pay the companies that do. This money goes towards maintaining, running and upgrading the networks
Policy costs. As Britain’s biggest generator of zero carbon electricity, we've never been busier helping cut UK carbon emissions to nothing. We also support the government in funding renewable energy and helping vulnerable customers. A wide range of organisations has recognised our efforts to be a more sustainable and responsible energy supplier
Operating costs. These costs cover running our call centres, sending your bills and reading your meters. We’re always looking for new ways to keep these costs as low as possible. For example, MyAccount and our mobile app, which lets you view and pay bills, send us meter readings or amend your Direct Debit details – all online
VAT. The UK government sets this at 5% on all home energy bills
Which EDF customers are impacted by any change in Ofgem's price cap?
The price cap applies to any EDF customers on a variable tariff. This means that customers on any of the tariffs below will have their prices reviewed every three months by Ofgem and may either see a decrease in price or an increase depending on many different factors we've listed above.
EDF's variable tariffs are as follows
Customers with either standard, prepayment, smart Pay As You Go, E7 meters and complex meters
- Standard (Variable)
- Safeguard Assist
Fix for the future
Our energy market heavily relies on imports, making prices vulnerable to sudden hikes. Protect yourself from price fluctuations by switching to our best fixed online deal.
Already an EDF customer? View our fixed tariff deals in MyAccount now.
We can help you take control – to use less and spend less
We’re here to help you become even more energy-efficient:
Not got a smart meter yet? Book your smart meter installation today to better understand your energy usage
Check out our energy-saving tips. Some of these are easy to do and completely free
Our ECO scheme helps customers on a low income install a package of free energy-saving measures to help customers improve their Energy Performance Certificate. See if you're eligible and apply.
Make sure you're on the best payment plan. Customers who pay by Direct Debit or smart Pay As You Go tend to be the cheapest
Please don’t keep quiet if you’re struggling to pay your energy bills
We appreciate that many customers continue to struggle with higher prices than before the energy crisis. There are lots of ways we can help. Like setting up a payment plan or helping you work out if you can get benefits, you may not know about.
The first and most important thing to do is tell us you can't pay your energy bills. The sooner you talk to us, the quicker we can help.
We've also teamed up with Citizens Advice Plymouth so you can get free, independent energy advice. The team can help you manage debt and reduce your energy costs. Go to their website or call them on 0808 156 6666 (Monday to Thursday 9am-5pm or Friday 9am-4.30pm).
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