The Default Tariff Cap

We set a limit on the amount that suppliers can charge certain consumers for a unit of energy. We do this via the Default Tariff Cap and it covers two types of consumer: those who are on the default (or standard variable) tariff of their supplier, and those who use a prepayment meter to pay for their energy.

The current level of the cap

We announce the updated cap level in February to reflect the level that will apply from April to September.

We announce again in August to reflect the level that will apply from October to March.

You can see details of the current level of the cap in our February 2021 default tariff cap decision.

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

In 2016 the Competition and Markets Authority (CMA) recommended the introduction of a price cap for consumers on default tariffs. We were then legally required to implement a price cap, to run until the end of 2020, by the  Domestic Gas & Electricity (Tariff Cap) Bill

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.

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