Check if the energy price cap affects you
It's likely your energy tariff is price-capped if you haven't switched or your fixed-deal has ended. The energy price cap is a backstop, keeping charges fair if you don't shop around. It's best to switch to get the best energy rates for you.
Does the price cap affect me?
The energy price cap is backstop protection from the government, calculated by Ofgem.
It applies if you’re on a , whether you pay by direct debit, or a .
It won’t apply if you:
- are on a
- have chosen a standard variable green energy tariff Ofgem has exempted from the cap.
You can call your supplier to check if you are on their default tariff. If you’re not on one, you’re probably already paying a better rate for your energy. But it's still worth checking if you could save more by switching.
The price cap limits the rates a supplier can charge for their default tariffs. These include the standing charge and price for each kWh of electricity and gas (the units your bill is calculated from).
Ofgem sets the cap level for summer and winter based on the underlying costs to supply energy. This keeps prices fair and makes sure suppliers reflect any drops in costs in your rates.
Will my bills fall or rise under the price cap?
The price cap won’t limit your total bill if you are on a default tariff.
The cap level we set depends on costs in the energy market. So your bills could go down or up.
Different factors also affect how much suppliers change their prices (the rate they charge you) to meet the cap:
- where you live
- how you pay (prepayment, direct debit or standard credit)
- your type of energy meter.
Your energy usage will affect your total bill too.
It’s best to contact your supplier for personalised information on your tariff.
Any figures you may see in the media aren’t guaranteed. They also usually show a customer with ‘typical’ energy usage who pays by direct debit. So what you pay could be more or less than what’s reported.
Your supplier must automatically apply the price cap Ofgem sets if you are on a default tariff. That’s right so you get a fair price, but it won’t mean you’re on the cheapest deal. Shop around to see if you can get a better tariff.
Learn about the energy price cap
What is the level of the energy price cap now?
It’s best to contact your supplier for personalised information.
Here you can see the average level set for a dual fuel customer with typical usage by payment method. The charts also show the cost elements influencing the cap.