What is the Energy Price Cap?
The energy price cap is a regulatory measure set by Ofgem, the body that oversees energy suppliers in Great Britain. Its primary purpose is to limit the maximum amount energy suppliers can charge consumers for each unit of gas and electricity they consume.
Additionally, the cap also sets a maximum daily standing charge, which is the fee consumers pay to have their homes connected to the energy grid.
Introduced on 1 January 2019, the energy price cap was designed to protect millions of households on expensive variable tariffs from being overcharged. It is particularly applicable to providers’ standard and default tariffs, which a significant majority of households are subscribed to. The cap is influenced by several factors, with wholesale energy prices (the prices that energy firms pay) being a major determinant.
It’s important to note that while the cap limits the rate at which energy is charged, the total bill can still vary based on individual consumption. In other words, if you use more energy, your bill will be higher, and if you use less, it will be lower. The cap undergoes periodic adjustments, reflecting changes in the energy market and other influencing factors.
Read on to learn more about the Energy Price Cap.
What is the current Energy Price Cap?
When will the Price Cap next change?
When is the Price Cap assessed?
What factors do Ofgem consider during these assessments and how do they impact the Energy Price Cap?
How much are the kWh rates and standing charges under the Price Cap?
What are daily standing charges and what do they pay for?
How do I know if I am on a price-capped energy tariff?
Does how I pay my bill impact the Price Cap?
How long will energy prices be capped?
How did the Price Cap evolve?
Is there an energy price cap for businesses?
Chris is a personal finance specialist who founded Council Tax Advisors in 2012, assisting over 250,000 people with their Council Tax debt. Observing that many clients overpaid on utilities, he launched Utility Saving Expert in 2014, an energy price comparison site. In 2016, the platform expanded its services to include consumer and business insurance comparisons. Utility Saving Expert stands out with its commitment to social responsibility, donating 10% of net profits to fuel poverty charities, underscoring its dedication to both client value and community support.