Default Tariff Cap
Default Tariff Cap replaces Energy Price Guarantee as the cap on consumer energy bills
From 1 July 2023 the Default Tariff Cap will replace the Energy price guarantee as setting the maximum price a typical domestic consumer will pay for their energy bill.
However, the EPG remains in effect at a level of £3,000 until April 2024 and will therefore continue to offer protection to consumers in the event that future price caps increase above this level.
For further information on the Energy Price Guarantee, please see the Energy Bills Support Factsheet.
When is the Default Tariff Cap updated?
On 4 August 2022, we announced that the cap level will be updated quarterly. You can see details of the reason for this change in our Price cap: Decision on changes to the wholesale methodology.
In February we announce the cap level that will apply from April to June.
In May we announce the cap level that will apply from July to September.
In August, we announce the cap level that will apply from October to December.
In November, we announce the cap level that will apply from January to March.
You can see details of the forthcoming level of the cap in our May 2023 default tariff cap announcement.
You can see details of the current level of the cap in our February 2023 default tariff cap announcement.
The Default Tariff Cap table of public information outlines the available inputs and sources used to calculate the Default Tariff Cap models.
You can subscribe to our Alerts & Briefings e-newsletter to be notified each time we update the price cap.
Breakdown of the energy price cap
Click a chart to view the different cost factors behind the set cap level by payment method. The charts show an indicative example of a cap level for a customer using a typical amount of energy.
Background
We ran a price cap from 2017 to the end of 2020 for customers using prepayment meters (the Prepayment Meter Price Cap) and we ran a price cap from 2019 to the end of 2020 for customers on standard variable tariffs (the Default Tariff Cap). We combined these programmes into a single Default Tariff Cap from 1 January 2021. In August 2022, Ofgem announced the Default Tariff Cap will be updated on quarterly basis rather than every six months.
Need help?
If you have technical or policy questions about the cap, please contact us at retailpriceregulation@ofgem.gov.uk.
If you are an energy customer looking to find out your capped tariff price, please contact your energy supplier. You can find their contact information on an energy bill, or see Who is my energy supplier?
You can also find answers to frequently asked questions on our energy price caps guide