Energy price guarantee replaces Default Tariff Cap as the cap on consumer energy bills

From 1 October 2022 the Default Tariff Cap has been replaced by the Energy price guarantee as the maximum price a consumer will pay for their energy bill.

For further information on the Energy Price Guarantee, please see the Energy Bills Support Factsheet.

We will still continue to set the Default Tariff Cap. This still reflects the cost of supplying energy and will be used by the government to set the Energy Price Guarantee.

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 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.

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.

You can see details of the forthcoming level of the cap in our November 2022 default tariff cap announcement.

You can see details of the current level of the cap in our August 2022 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.

Publications and updates