Ofgem Price Cap

Modified on Tue, 19 Aug at 3:01 PM

What is the Ofgem Price Cap?

The Price Cap is set by Ofgem, the energy regulator, and it limits the maximum amount suppliers can charge customers on a default tariff (such as a Standard Variable Tariff).

  • The cap applies to unit rates and standing charges, not your total bill.

  • Your actual bill will depend on how much energy you use, where you live, how you pay, and the type of meter you have.

  • Ofgem reviews and updates the Price Cap every three months (January, April, July, October).


Does the Price Cap mean my bill can’t go above a certain amount?

No. The Price Cap is not a cap on your total bill. It only limits the cost per unit of energy. If you use more energy, your bill will be higher; if you use less, it will be lower.


Who does the Price Cap apply to?

  • Customers on a Standard Variable Tariff (SVT).

  • It does not apply to customers on a fixed tariff — your rates are locked in under your contract.


Do I need to do anything?

No. If you’re on a tariff covered by the Price Cap, it’s applied automatically to your account and you'll be notified of any price changes.

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