Do price caps affect me?
Price caps apply if you:
- Are on a default energy tariff (including standard variable tariffs)open key term pop-up
- Have a prepayment energy meteropen key term pop-up.
Not everyone’s energy tariff is price capped. They don’t apply if:
- You are on a fixed-term energy tariffopen key term pop-up
- You actively chose to sign up to a renewable energy tariff (standard variable) which Ofgem has exempted from the cap.
Default tariffIf 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 meterA 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 tariffA tariff with specific terms applying to the contract conditions. Usually these lock-in a price for a year or more, amongst other services. More.
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).
Get further info
Standing chargeRead 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
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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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.
- Ofgem switching guide: How to check, switch and save on your energy
- List of Ofgem-accredited price comparison sites: Compare offers with confidence
- Energy Switch Guarantee: Learn how you can switch under guarantee