The Energy Price Cap is changing
The Energy Price Cap, which controls what most households pay for energy, is set to fall by 7% on average from 1 October 2023.
This latest cap means that annual energy bills for a typical British household that receives both gas and electricity from one supplier will be around £1,923. That's a reduction of around £151 a year compared to the current price cap unit rates.
What is the energy price cap?
Ofgem, the body that regulates energy suppliers in Great Britain, sets the energy price cap.
The price cap ensures that prices for people on default energy tariffs are fair and reflect the cost of energy. Ofgem reviews the price cap every three months. So, bear in mind the cap could rise again in January 2024.
The cap is a set limit on the cost of each unit of gas and electricity that you use. Additionally, it sets a maximum daily standing charge amount – this is what you pay to have your home connected to the grid.
Finally, it applies to the standard or default tariffs charged by energy companies. You can learn more about what standard, default and fixed tariffs are at www.citizensadvice.org.uk
How is the cap measured?
The cap limits the maximum amount energy suppliers can charge you for each unit of energy you use. The cap does not limit your total bill, which depends on how much energy you use.
This means there's no upper limit on your total bill - if you use more energy, you'll pay more, and if you use less, you'll pay less. So, it's good to remember how you pay for your energy, where you live, your meter type and how you use your energy will affect your energy bill.
Grants and benefits to help you pay your energy bills
If you're struggling, there is help and support available to you, such as:
- Fuel vouchers from your local council
- The Priority Services Register
- Warm Home Discount (from October 2023)
- Grants to help you pay off your existing energy debt
- Grants for energy saving home improvements
We’re here for you
If you need support with money and benefits, we're here to help. Our specialist advisors offer free and confidential one-to-one advice. They can help you access the right support and services. Learn more on our benefits and budgeting page.