The energy price cap is the maximum price that energy providers in England, Scotland and Wales can charge for a unit of gas and electricity and standing charges on their standard variable tariff (SVT). The standard variable tariff is the tariff customers are automatically put on if they do not set up a deal with their energy provider or when their fixed tariff comes to an end.
This article covers:
- How much is the energy price cap?
- How often does it change?
- Why is there a price cap?
- Who is Ofgem?
- How can Switchd help?
How much is the energy price cap?
As of January 2024, the price cap is set at £1,928 annually for the typical UK household.
Keep in mind that this is an estimate for a household with an annual energy consumption of 2,900 kWh for electricity and 12,000 kWh for gas. Your annual projection will depend on your particular energy usage, the way you pay for your energy, your meter type and where you live.
For further reference, you may refer to the below table for the specific rates:
|Unit rate per kWh
|Standing charge per day
How often does it change?
The new price cap is announced usually a month before it actually takes effect. It is then reviewed and updated every 3 months, with updated rates effective in January, April, July and October.
Why is there a price cap?
The price cap was implemented by OFGEM in 2019 and is designed to protect consumers from sudden price changes in the market.
Who is Ofgem?
The Office of Gas and Electricity Markets (Ofgem) are the government appointed, independent energy market regulators. They work to ensure consumers are treated fairly.
Check out their website for more information on them and other useful information about the price cap: Who are Ofgem?
How can Switchd help?
We scan the market every day. As a Switchd member, you can relax while we monitor the market. You don't have to do anything; we'll simply keep you updated on available deals. We'll keep you in the loop about new deals when they arise. With an increasing number of new tariffs surfacing the market, when the time is right to switch, expect an email from us!