Energy price cap

The energy price cap is the maximum amount energy suppliers can charge you for each unit of energy and standing charge if you're on a standard variable tariff.

Between 1 April to 30 June 2024 the energy price cap is set at £1,690 per year for a typical household who use electricity and gas and pay by Direct Debit. This is £238 lower than the cap set between 1 January to 31 March 2024 (£1,928).

The price cap is based on typical household energy use. Read how typical household energy use is worked out in our Average gas and electricity usage guidance.

The price cap also makes sure that prices for people on a standard variable tariff (default tariff) are fair and that they reflect the cost of energy.

You are covered by the price cap if you pay for your electricity and gas by either:

  • standard credit (payment made when you get your electricity and gas bill)
  • Direct Debit
  • prepayment meter
  • Economy 7 (E7) meter

Electricity and gas unit prices and standing charges, 1 January to 30 June 2024

 

Energy price cap per unit and standing charge

1 January to 31 March 2024

Energy price cap per unit and standing charge

1 April to 30 June 2024 

Electricity

28.62 pence per kWh

53.35 pence daily standing charge

24.50 pence per kWh

60.10 pence daily standing charge

Gas

7.42 pence per kWh

29.60 pence daily standing charge

6.04 pence per kWh 

31.43 pence daily standing charge

Figures are rounded to two decimal places and based on the England, Scotland and Wales average for people who pay by Direct Debit. These include VAT. 

Energy price cap standing charges and unit rates for your region

The actual rates you are charged will depend on where you live, how you pay your bill and the type of meter you have. Get energy price cap standing charges and unit rates by region.

Costs included in energy price cap

There are different costs included in the price cap. Any changes to these costs will affect how much the price cap will be each time it is reviewed. For example, if the amount a supplier has to pay goes up, the level of the price cap will go up. If the cost goes down, the level of the price cap will go down.

View how the costs have changed in each price cap level.

Changes to costs between 1 January to 30 June 2024, payment by Direct Debit

Cost

 

January to March 2024 April to June 2024  Change
Buying energy for customers (wholesale costs) £985 £720 -£265
Unexpected temporary cost adjustments (adjustment allowance) £11 £28 £17
Build, fix and repair pipes and wires to transport energy (network costs) £381 £368 -£13
Supplier business costs (operating) £221 £223 £2
Government social and environmental schemes (policy) £157 £188 £30
Earnings Before Interest and Taxes (EBIT) allowance £43 £40 -£3
Uncertain costs and risks (headroom) £21 £18 -£3
Extra costs for supplying energy customers using different payment methods
(payment uplift)
£16 £15 -£1
Making sure prepayment and Direct Debit customers pay the same standing charge (levelisation allowance April to June 2024) £0 £10 £10
VAT (5%) £92 £80 -£11
Total £1,928 £1,690 -£238

Costs have been rounded and may not add up to the total.

The levelisation allowance is a new cost that will be added into the price cap from 1 April 2024. This means that people who pay for their energy using a prepayment meter will pay the same standing charge as those who pay by Direct Debit.

We monitor suppliers to make sure their standard variable tariff (default tariff) rates do not go above the limit set by the price cap. Read more about how we protect these people in our energy price cap (default tariff) policy.

Energy price cap level dates

We review and update the price cap level every three months. The levels for the next periods will be announced by:

  • 25 May 2024 – period 1 July to 30 September 2024
  • 27 August 2024 – period 1 October to 31 December 2024
  • 25 November 2024 – period 1 January to 31 March 2025