Energy price cap
Ofgem will increase the energy price cap by £149 in October.1
We’ll keep this page updated, so you know what this means for you if you’re on a variable tariff.
With prices set to increase this winter, now could be a good time to choose a fixed tariff.
In this article
How do Ofgem decide what the price cap will be?
What are the current price cap rates?
What do I need to know about the price cap?
What is the energy price cap and how does it work?
The price cap, introduced by the government in 2019, limits the rates for customers on standard variable energy tariffs. The energy price cap is set by Ofgem every January, April, July and October. It places a maximum amount you'll pay per unit of energy you use, and the daily standing charge that covers the distribution cost of getting gas and electricity to your home.
It doesn't cap your total bill - the more energy you use, the more you'll pay.
How do Ofgem decide what the price cap will be?
Ofgem set the price cap by working out how much it costs energy suppliers to supply you with gas and electricity. These costs cover things like buying wholesale energy, maintaining supply pipes as well as wiring and operating costs.
Energy price cap predictions2
We want to keep you informed, so here's a summary of our latest (9th September 2024) energy price cap predictions. Please note, this is for guidance only and isn’t guaranteed.
Energy prices will rise 1st October
On 23 August, Ofgem announced that energy unit prices and standing charges will increase from 1st October. If you’re on a variable tariff, this means you’ll pay more for your energy.
What can affect our energy price cap predictions?
The energy market has been more stable recently, but surprises can happen. Global politics play a big role in energy prices. For example, if conflicts in Ukraine, the Middle East, or Taiwan worsen, wholesale gas prices could go up. This would eventually mean higher bills.
There’s ongoing talks about how the next price cap is calculated, and other energy rules which could affect prices in 2024, changing these predictions.
We’ll keep these forecasts updated every month to help you understand if a fixed or variable tariff would be best for you.
| Period | Price cap predictions | Confidence level |
|---|---|---|
| Q3 2024 starts 1 July | £1,568 | Current cap |
| Q4 2024 starts 1 October | £1,717 | Confirmed |
| Q1 2025 starts 1 January | £1,745 | Best estimate |
| Q2 2025 starts 1 April | £1,745 | Best estimate |
According to the latest predictions, energy prices will rise until 1 April 2025. Right now, fixed tariff deals might look a little more expensive than the current Standard Variable tariff price (SVT). However, with a fixed tariff you’ll be protected from any future prices for the length of your contract, so you could save money over your contract's term if prices go up as predicted.
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What are the current price cap rates?
Select the payment option below and enter your postcode to find out your local Standard Variable Tariff price cap rates - the table to the right hand side will automatically update.
Direct Debit - July 2024 price cap rates
- Gas standing charge
- 31.413p
- Gas unit rate
- 5.479p
- Electricity standing charge
- 60.098p
- Electricity unit rate
- 22.362p
Pay on Receipt - July 2024 price cap rates
- Gas standing charge
- 35.205p
- Gas unit rate
- 5.766p
- Electricity standing charge
- 65.878p
- Electricity unit rate
- 23.537p
Pay As You Go - July 2024 price cap rates
- Gas standing charge
- 31.404p
- Gas unit rate
- 5.259p
- Electricity standing charge
- 60.087p
- Electricity unit rate
- 21.581p
What do I need to know about the price cap?
The price cap doesn’t apply to fixed tariffs
If you’re on a fixed tariff, the price cap won’t affect you as your prices are locked in for the length of your contract. We won’t increase the price you pay, unless the government increases VAT.
You can check what tariff you’re on in your online account.
Send us monthly meter reads for accurate bills
It’s quick and easy using our app or in your online account.
We use your meter readings so we can send an accurate bill or statement based on your energy use. If we don't receive your readings, we'll make estimates based on typical energy use, which could result in a higher bill than necessary.
When will my Direct Debit change?
Your Direct Debit amount doesn’t adjust automatically when tariff prices change.
If price cap rates are going down, there may be other reasons why we may increase your Direct Debit payments, such as matching the cost of your ongoing average energy use. Also, if your account has a negative balance, we may increase your payments to get your account back to a positive balance.
When will my prepayment meter prices change
Electricity key meters
If you have a meter that you top up with a key at Payzone or Post Office, to get the new prices you need to top up on or after 1st April. Your meter will have the new prices once you've put the key back in your meter.
Pay As You Go smart meters
We know that some of our smart meters won't get the new prices no matter how much we try. If we can't fix yours after three months, we'll send you a cheque for anything you've been overcharged.
Smart Energy Monitors
Some Smart Energy Monitors (SEM) won't update with the new prices, so the estimated cost of energy they show will be wrong. Your bills and Direct Debits will be accurate with the new prices. We’ll keep trying to fix your SEM so it updates correctly.
What can I do to manage energy costs?
Reduce your usage to save energy and money on bills
The price cap limits the unit rates and standing charges, not your annual energy cost.
Here are some energy-saving steps you can take right away to improve the energy efficiency of your home without spending a penny.
Lock in your energy prices
Our fixed energy tariffs can provide peace of mind that your prices won't increase this winter. Check out all our available tariffs in your online account.
Help with your bills
If you need help paying your energy bills on time, there are a number of ways we can help you.
Save money with PeakSave
Earn money off your bills for making small changes to when you use electricity.
It’s cheaper by Direct Debit
Change the way you pay to Direct Debit, and you’ll pay a lower unit rate and standing charge.
Upgrade to smart meters
Easily see how much energy you're using at a glance, which can help you save money.
Legal information
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Our current prediction is that the price cap will increase for the period between 1st October and 31st December 2024. See our latest predictions for the price cap. If the price cap falls after December 2024, you could pay more for your energy with a fixed tariff.
Predicted prices based upon a customer paying by Direct Debit and Ofgem’s typical domestic consumption values (TDCVs) which are set at 2,700 kWh per year for electricity, and 11,500 kWh per year for gas. Our price cap predictions follow Ofgem’s price cap methodology, and we apply our forecasts of other costs to predict future price cap levels. Our prediction will change based on changes in the cost of wholesale energy for future periods.