The Energy Price Cap: A Comprehensive Guide
What is the Energy Price Cap?
The energy price cap is a government-imposed limit on the maximum price that energy suppliers can charge households for their gas and electricity.
The cap is set by the energy regulator, Ofgem, and is reviewed twice a year, in April and October.
How does the Energy Price Cap work?
The energy price cap is applied to standard variable tariffs (SVTs), which are the default tariffs that energy suppliers offer to households.
If you are on an SVT, your energy supplier cannot charge you more than the price cap for your gas and electricity.
However, if you are on a fixed-term tariff, you will not be affected by the price cap until your fixed term ends.
What is the current Energy Price Cap?
The current energy price cap is £1,277 per year for a typical household.
This cap came into effect on 1 April 2022 and will be reviewed again in October 2022.
How can I check if I am on the Energy Price Cap?
You can check if you are on the energy price cap by looking at your energy bill.
If you are on an SVT, your bill will state that you are on the "price cap".
What should I do if I am not on the Energy Price Cap?
If you are not on the energy price cap, you may be able to switch to a cheaper tariff.
You can use a price comparison website to find the best deals on energy tariffs.
What are the benefits of the Energy Price Cap?
The energy price cap helps to protect households from high energy prices.
The cap ensures that energy suppliers cannot overcharge their customers for gas and electricity.
What are the disadvantages of the Energy Price Cap?
The energy price cap can make it difficult for energy suppliers to make a profit.
This can lead to some energy suppliers going out of business.
What is the future of the Energy Price Cap?
The future of the energy price cap is uncertain.
The government has said that it will review the cap in October 2022.
