To help protect consumers, the Government has announced the Energy Price cap which comes into effect on 1 October 2022.
This new scheme will cap the unit cost of electricity and gas so that a household with typical energy use in Great Britain pays, on average, around £2,500 a year on their energy bill, for the next 2 years.
If you use more than the typical customer or your property is larger than the typical customer’s then you will pay more than £2,500 per year.
The price cap applies to the unit rate of gas and electricity. If you use more energy than average then you will pay more.
For an individual customer, the amount paid under the Energy Price cap will vary depending on how much energy they use, where they live, how they pay for their energy, and their metering arrangement.
The £2,500 figure is based on a household with typical consumption on a dual electricity and gas bill paying by direct debit.
The table below shows the average capped rates for a customer, with typical usage paying by direct debit on a default tariff.
Customers with typical usage, paying by direct debit
Electricity |
£0.34 per/kWh Daily standing charge: £0. 46 |
|---|---|
Gas |
£0.10 per kWh Daily standing charge: £0. 28 |
Standing Charges
Average standing charges for customers on default tariffs will remain capped in line with the levels set for the default tariff cap from 1 October for a typical dual fuel customer paying by direct debit.
- 46p per day for electricity
- 28p per day for gas
The energy price cap is a backstop protection from the government, calculated by Ofgem.
It applies if you’re on a default energy tariff, whether you pay by direct debit, standard credit, or a prepayment meter.
If your supplier has stopped trading and you are switched to a new supplier, you are likely to be on a price-capped tariff.
It won’t apply if you:
- are on a fixed-term energy tariff
- have chosen a standard variable green energy tariff Ofgem has exempted from the cap.
Contact your supplier to check if you are on their default tariff.
The price cap limits the rates a supplier can charge for their default tariffs. These include the standing charge and price for each kWh of electricity and gas (the units your bill is calculated from).
It doesn't cap your total bill, which will change depending on how much energy you use.
Suppliers can't charge you more than the cap we set and we monitor suppliers to make sure their default tariff rates comply.
If you are worried or struggling to pay your energy bills, contact your energy supplier as soon as possible.
Rules mean you can ask to agree payment plans, and you may be eligible for extra help through grants and services.