Is the price of my energy bill capped?

Mae’r dudalen yma ar gael yn Gymraeg.

Do price caps affect me?

Price caps apply if you:

Not everyone’s energy tariff is price capped. They don’t apply if:

Default tariff

If you’ve never switched energy supplier or have switched only once, you’re likely to be on a poor value, more expensive ‘default’ tariff. Default tariffs, including standard variable tariffs, are a basic tariff from an energy supplier. More.

Prepay or prepayment meter

A prepayment meter tariff means you pay upfront for your gas or electricity use. You can ‘top up’ using an app on your phone, by text or through a token or key card at a shop. More.

Fixed-term tariff

A tariff with specific terms applying to the contract conditions. Usually these lock-in a price for a year or more, amongst other services. More.

Helpful advice

A price cap limits the rates a supplier can charge you based on the underlying costs to get energy to you. This keeps prices fair. It applies to the standing chargeopen key term pop-up and price for each kWH of electricity and gas (the units your bill is calculated from).

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Standing charge

Read the definition of the term standing charge from our list of key terms and issues explained relating to energy for consumers and business. More.


How much could I save?

Your total bill won’t be limited by a price cap. So savings on a price-capped tariff will always depend on your personal circumstances, such as how much energy you use. If you use more electricity and gas, you will still pay more than those who use less. Different factors also affect how much suppliers will need to change their prices to comply with the caps:

  • Where you live
  • How you pay (direct debit or standard credit)
  • Your type of energy meter

Helpful advice

It’s best to contact your supplier for savings information specific to you, and to see if you can save more. Savings figures you may see in the media aren’t guaranteed. They usually reflect a customer with ‘typical’ energy usage who pays by direct debit. So you could save more or less than what’s reported.

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What next?

If you have a prepayment meter or end up on a default tariff, your supplier must automatically apply the price caps Ofgem sets. That’s right for you to ensure you get a fairer price, but it won’t mean you’re on the cheapest deal available. So always see if you can save more.

Helpful advice

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