What is the price cap?

The price cap limits the amount you pay for each unit of energy you use. It’s set every three months by Ofgem, the energy regulator, and at a level that represents the costs suppliers are facing for supplying gas and electricity to your home.

They announced that from 1 April 2024 the average household*, with typical energy consumption and paying by Direct Debit, pays around £1,690 for a year’s energy if they’re on a flexible (standard variable) tariff.* Currently, the same household pays £1,928.

Remember, this figure is an average. How much you pay will depend on how much energy you use. 

Does the price cap affect me?

If you’re on a flexible (standard variable) or Economy 7 tariff, or use a prepayment meter, the price cap limits the amount you pay for each unit of energy you use. We'll be in touch to share any important updates, with details of how it affects your energy bill.

It doesn’t affect customers on fixed tariffs, because those rates are locked in place for the duration of the contract. 

 

* The average annual bill figure is for illustrative purposes only and is based on Ofgem’s national average consumption rates of 2,700 kWh of electricity and 11,500 kWh of gas. Your actual costs may differ based on the amount of energy consumed.