Energy price cap
Ofgem’s energy price cap limits what you pay for gas or electricity on a variable rate plan. Find out how it works – and how it affects your prices.
April 2024 price changes
The way energy suppliers set prices is impacted by the price cap – set by Ofgem, the energy regulator. This limits the amount customers on variable-rate plans will pay for each unit of gas and electricity and sets a maximum standing charge.
Ofgem have announced that the new price cap will be £1,690 for a typical household¹ from 1 April until 30 June 2024. This is a decrease of £238.
In most regions, the unit rate is going down in line with the new price cap. The standing charge is going up slightly in most regions, but the majority of customers will still pay less over a year.
What this means if you pay monthly for your energy
If you're on a variable rate plan
Most customers’ annual costs will go down on 1 April in line with the new price cap. If your prices are changing, we’ll write to let you know how it impacts you. Your actual bills will still depend on how much energy your home uses.
If you're on a fixed rate plan
The price cap doesn't affect prices for fixed-rate plans. If you're on a fixed-rate plan your prices won't change until your current plan ends.
What this means if you Pay As You Go for your energy
All Pay As You Go prices are variable – so your unit rate and standing charge will change in line with the price cap. Government support through the Energy Price Guarantee (EPG) will end on 1 April.
We’ll write to you to let you know if this impacts you personally.
Useful to remember: if your home uses more energy, your costs can go up
The price cap doesn’t put a limit on the total cost of your energy. Instead, it limits the amount you pay per unit of gas or unit of electricity – and for your daily standing charge. This means if your home uses more energy, costs can still rise.
It can be helpful to think of it like filling up a car with petrol. The price per litre stays the same, but the total cost changes – depending on how much you fill up.
More ways to save
You might save by moving to a fixed plan
Check your online account for our latest prices.
Get a free smart meter
See your home’s energy use in real time and spot ways to save with a smart meter online. You’ll also unlock money-saving offers and rewards like Power Move.
Save money by using off-peak energy
Join our Power Move challenges. So far, customers have saved 15.9 tonnes of carbon – and cut £746k off their bills.
Prices are lower with a Direct Debit
You can set it up in your online account. We'll review your Direct Debit regularly to make sure it covers your energy costs and that you're paying the right amount.
Get accurate bills by sending a meter reading before 31 March
You can send a reading in your energy account or on our app.
There’s still support available
We’re here to support you.
Our Customer Support Package offers specialist help to customers – including financial relief and guidance.
If you’re worried about your energy bills, please contact us.
Priority Services Register
Need extra support? We can offer free help if you’re ill, have a disability or have a medical condition.
Questions and answers
The price cap limits the amount customers will pay for each unit of gas and electricity and sets a maximum standing charge. The cap is set by Ofgem (the energy regulator) and determined by the price of wholesale energy. It’s reviewed 4 times a year, with changes coming into effect in January, April, July and October.
This is a cost that’s paid by everyone who has an energy account in the UK – whether their home is using any energy or not. It’s used to pay for things like the maintenance of pipes, power lines, and meters.
Your projected annual cost may increase even if your unit rate decreases due to other factors, such as changes to standing charge. Your estimated annual cost takes into account your unit rate, standing charge, and previous energy use. If your unit rate decreases but your standing charge increases, the overall amount you spend on energy over the year might increase. This is especially likely if you're a low energy user.
Here’s an example for a home that typically uses 1,000 kWh per year:
Old prices:
Unit rate: 30p per kWh
Standing charge: 60p per day
Annual cost: £519
New prices:
Unit rate: 28p per kWh
Standing charge: 70p per day
Annual cost: £535.50
In this scenario, the unit rate has decreased. But the increase in the standing charge results in an estimated £16.50 increase on energy costs over the year.
It’s a different story if we look at a home that typically uses 3,000 kWh per year:
Old prices:
Unit rate: 30p per kWh
Standing charge: 60p per day
Annual cost: £1,119
New prices:
Unit rate: 28p per kWh
Standing charge: 70p per day
Annual cost: £1,095.50
Although this home spends more on energy than the previous example, the price changes mean they’re estimated to save £23.50 over the year.
This shows how changes in both unit rate and standing charge can impact your overall energy costs.
Each region’s affected differently by the price cap. While most areas will see a drop in unit rate prices alongside a rise in standing charges, some regions experience unique variations. This is because the price cap factors in the complexity of infrastructure needed to deliver power to each area. It also considers the specific needs of the local population.
Yes. If you choose a fixed rate plan your rates will stay the same until the end of your contract.
For our latest prices and to see if you could save, check your online account.
If you're on a fixed rate plan, there'll be no change to the price you're paying right now.
If you'd like to switch to a variable rate plan, just give us a call. Just so you know – you might need to pay exit fees if you choose to end your plan early.
We've put together a guide covering tips to help you save energy and money.
Our priority right now is making sure you have as much support as possible through this challenging period.
We’re offering customers extra financial and practical support with our Customer Support Package. You can find out more and apply online.
If you’re concerned about topping up or paying your energy bill, contact us as soon as possible.
We’re here to help, and our teams can talk you through your options and advise on what might work best for you.
We’ve supported lots of people in similar situations – and we can support you too. The sooner you speak to us, the easier it will be to talk you through what support and advice is available.
Let us know if:
- Your financial circumstances have changed
- You’re elderly, have a disability or long-term illness
We’re here to work with you to make a suitable plan, and talk to you about organisations that can also help.
If you’re worried about your energy bills, please contact us.
Direct Debit questions
We work out your Direct Debit based on your new prices and energy used over the year. If we think the Direct Debit is too high, or too low, then we'll let you know.
To work out your monthly Direct Debit amount, we:
- look at your energy use to date and how much you’re likely to use until 31 March (or the end of your contract if you’re on a fixed plan)
- take into account your current balance and any other costs such as the standing charge and any add-ons you have
- divide the amount by the number of payments left until 31 March, or the end of your contract – and that gives us your monthly amount
Our aim is to make sure you don’t build up unexpected debt by the end of winter. Or the end of your contract if you're on a fixed plan.
It’s useful for your balance to be in a bit of credit. That’s because it can act like a pot of money to cover those times when your energy use might be higher.
For example, you’re likely to build up credit in the summer months when energy use is lower. But you might need to use this credit in the winter months when it’s colder and darker – and your energy use could be much higher.
We regularly check you’re paying the right monthly amount so your balance stays on track for the whole year.
Sometimes, even if your balance is in credit, we might still need to increase your monthly payments. This would be if your balance is likely to go below zero by the 31 March or end of your fixed plan. We work this out by calculating your predicted energy use, and seeing if your payments will cover it.
Yes, if you're on a variable rate plan then you’ll pay less if you pay by Direct Debit.
We estimate our average customer will save £106³ a year by choosing Direct Debit.
Paying a monthly Direct Debit amount also means you don’t have to spend time paying your bills every month. And it helps to split the cost of your energy bills into equal payments throughout the year.
Help and support
If you’re concerned about topping up or paying your energy bill, contact us as soon as possible.
We’re here to help, and our teams will be able to talk you through your options and advise on what might work best for you.
We’ve supported lots of people in similar situations – and we can support you too. The sooner you speak to us the easier it will be to talk you through what support and advice is available.
Let us know if:
- Your financial circumstances have changed
- You’re elderly, have a disability or long-term illness
We’re here to work with you to make a suitable plan, and talk to you about organisations that can also help.
If you’re worried about your energy bills, please contact us.
We work with a number of charities and organisations that offer free support.
Citizens Advice
- Citizens Advice England and Wales
- Citizens Advice Scotland
- Adviceline (England and Wales): 0808 223 1133
- Adviceline (Scotland): 0808 196 8660
National Debtline
- National Debtline
- Helpline: 0808 808 4000
StepChange Debt Charity
- StepChange
- Debt helpline: 0800 138 1111
Civil Legal Advice
- Check if you can get legal aid
- Telephone: 0345 345 4 345
Here are trusted organisations you can contact for more energy-saving advice and tips:
Sources and references
1 Figures are for typical domestic consumption paid by Direct Debit (11,500 kWh for gas and 2,700 kWh). This will vary based on actual household usage.
2 Figures are for typical domestic consumption for customers that Pay As You Go (11,500 kWh for gas and 2,700 kWh). This will vary based on actual household usage.
3 This saving is based on a typical domestic dual fuel customer who uses on average 11,500 kWh for gas and 2,700 kWh for single-rate electricity, and will vary based on actual household use.