The price cap and your bills
Ofgem, the energy regulator, limits the price customers pay for each unit of energy they use. You may have questions about what it means for you.
Ofgem, the energy regulator, has announced a new price cap amount. This applies from Monday 1 January.
What is the price cap?
Set every three months by Ofgem, the price cap limits the amount you pay for your energy. It covers the price of each unit of energy you use, and the daily standing charge that covers the cost of getting that energy to your home.
How does the price cap limit energy costs?
The price cap doesn’t cap your total bill – the more energy you use, the more you’ll pay. But it sets how much you’re charged for each unit of energy.
How is the price cap different from the EPG?
The Energy Price Guarantee (EPG) was launched last October by the Government as an additional measure to further limit the price of energy. Because the amount set by the price cap is now lower than the EPG, the EPG doesn’t apply.
What this means for you
If you’re on a flexible (standard variable) or Economy 7 tariff, or use a prepayment meter, the price cap affects your bill.
For the average UK household, this means the price of a year’s typical energy consumption is £1,928.*
You’ll be contacted with specific details on what this means for your bills.
If you’re worried about your energy bill
We know this is a challenging time for our customers. But right now, staying on top of the details of your account can help. Reducing your energy use where you can will also make a difference.
Check your account
If you don’t have a smart meter, send us readings when we let you know it’s time – that way you’ll receive accurate bills. And if you haven’t set up a Direct Debit, doing this will save you money.**
See how to save energy
You might already be cutting down on your energy use. But it's worth seeing if there are any tips you don’t yet know about. Explore our room-by-room guide to see where you can save energy.
If you’re struggling to pay
We can support you
We know these are difficult times for our customers, and want to do everything we can to help. We have a £20 million Helpfund in place to help customers who are struggling, and want to make sure it reaches each and every person who needs it.Learn more about the Helpfund
We're here to help
If you’re worried about paying your bill, please get in touch so we can talk you through the solutions we can offer. We're here 8am to 7pm Monday to Friday, and 9am to 4pm on Saturday, to answer your questions and find ways to help.How to contact us
* The average annual bill figure is for illustrative purposes only and is based on Ofgem’s national average consumption rates of 2,700kWh of electricity and 11,500 kWh of gas. Your actual costs may differ based on the amount of energy consumed.
** The average household on a flexible tariff (SVT) saves £130 a year by paying with Direct Debit. Savings vary as rates are applied against standing charges and unit rates. Customers on a fixed tariff will save up to £48 per fuel when paying by Direct Debit.