- 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
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, and 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.
Who's affected by the price cap?
The price cap applies to all customers on a standard or deemed tariff.
Today's announcement regarding the price cap means on July 1 the overall price cap will decrease to £2,074 from £3,280 per year based on an average household(1). Read Ofgem’s press release. We'll be writing to customers in the coming weeks to update them on what today's announcement means for them.
Customers who pay via Budget Direct Debit are not required to take any action. At your next review, your Direct Debit will be adjusted to reflect any price changes, credits, or outstanding debt. We don't recommend adjusting your Direct Debit before your next payment review, as doing so might put you at risk of falling into debt.
We know things may still be difficult at the moment, but you can depend on our support. If you're struggling to pay your energy bills find advice and support in our help centre.
The government has decided to continue with the Energy Price Guarantee Scheme at £2,500 a year for a typical household(1) for at least three months. We know increasing the EPG to £3,000, even for the short-term, would have been unmanageable for many of our customers. We're preparing our new 1 April prices and will contact customers soon.
Ofgem has announced today that the price cap is changing on 1 April. Unit rates will decrease, but standing charges will increase slightly. The overall price cap will decrease to £3,280 from £4,279 per year based on an average household(1).Read Ofgem's press release
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.
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 get in touch with us to hear about the ways we can help you stay in control.
Three good reasons to remain on Direct Debit:
Find out how much your energy unit rate will increase if you cancel your Direct Debit.
If you reinstate your Direct Debit within ten days, your energy unit rate will remain unchanged.
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.
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:
Here are the savings insulation can save you on your bills each year:
Read our tips on energy saving at home. Some of these are easy to do and completely free.
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Ofgem estimates the typical household in Britain uses 2,900 kWh of electricity, 12,000 kWh of gas or 4,200 kWh for E7 annually.
Energy Hub is accessible in MyAccount. It is available for residential smart metered customers that have both electricity and gas supplied by EDF on a single rate tariff, or those who are supplied electricity by EDF on a single rate tariff. The smart meter must also be commissioned.
Save up to £63 with Energy Hub. Savings estimated on a sample from Apr 20-Apr 22 of 1500 customers who started using Energy Hub with Energy Breakdown and logged in 5+ times between April 2021-April 2022. Costs based on Ofgem's typical annual consumption positioned against projected Standard (Variable) consumption costs of April 23-March 24. Ofgem estimates the typical household in Britain uses 2,900 kWh of electricity, 12,000 kWh of gas or 4,200 kWh for E7 annually.
Estimates based on a gas-heated detached home. Figures for England, Scotland and Wales are based on fuel prices under the Energy Price Guarantee running from April 2023 to the end of June 2023. Source: Energy Saving Trust for roof and loft insulation and cavity wall insulation.
Source: Energy Saving Trust
UK Fuel Mix disclosure information, published by Government Department BEIS, recognises electricity from wind, solar and nuclear fuel produces zero carbon dioxide emissions at the point of generation.
The zero-carbon electricity purchased is supplied to the National Grid. Customers receive electricity via the National Grid, not directly from zero-carbon generators.
The below table summarises zero-carbon generation by company demonstrating EDF generating 34.3%. The data supporting the table below and the % values is sourced from a mixture of industry settlement data and the UK government renewable obligation database.
|ZERO-CARBON GENERATION SUMMARY BY COMPANY||2021||2021|
|Supplier name||zero-carbon||GWh of zero-carbon electricity generation||% of overall zero-carbon electricity generation|
|Fred Olsen Renewables||zero-carbon||698||0.7%|