What is the energy price cap?

The energy price cap limits the price of a single unit of energy for customers paying for variable energy tariffs.

Under the price cap, typical energy bills for a medium use household are around £1,568 per year (£131 per month) for the months from July to September 2024, but will be increasing to £1,717 per year (£143 per month) from October to December.

The price cap is not a limit on your total bill. It restricts the price per unit (or kWh) that energy companies can charge.

Your total bill depends on how much electricity and gas you use.

Are you on the energy price cap?

The price cap was introduced by Ofgem in 2019 to ensure fair prices for customers who don’t actively switch energy provider to make the most of deals.

It only affects variable tariffs - also known as standard, default or out-of-contract tariffs.

Previously, most people would have been on fixed energy tariffs and therefore not affected by changes to the cap. But because competitive fixed deals have been limited in recent years, most households (around 28 million) are currently paying variable rates for their energy. 

Use our free, independent energy comparison service to compare gas and electricity prices and find the best provider for you. 

How much is the current energy price cap?

The price cap is not a cap on your payments, but a limit on the amount that suppliers can charge for each unit of energy you use and your daily standing charge. 

Between 1 July and 30 September 2024 the average unit rates are as follows.

For direct debit customers:

• Electricity: 22.36p per kWh with a standing charge of 60.12p per day
• Gas: 5.48p per kWh with a standing charge of 31.41p per day 

If you have a prepayment meter, you pay the same standing charge as direct debit customers, but slightly lower rates per kilowatt hour:

• Electricity: 21.59p per kWh with a standing charge of 60.12p per day
• Gas:  5.26p per kWh with a standing charge of 31.41p per day 

If you pay when you receive your bills, your rates are the most expensive:

• Electricity: 23.54p per kWh with a standing charge of 65.93p per day
• Gas:  5.77p per kWh with a standing charge of 35.24p per day 

These are the average prices across England, Scotland and Wales. Your exact rates will depend on where you live.

How providers split the unit rate and standing charge is up to them, and dependent on the region you live in, but the total cost cannot be higher than the cap.

The widely reported figure for the price cap (e.g. £1,568 for July to October 2024) is an illustration based on what it might cost over a year for a household using a medium amount of energy, defined as 11,500kWh of gas and 2,700kWh of electricity per year. This means your bills might look very different depending on your circumstances.

We've run the electricity price through our lab energy use data to show you how much your household appliances cost to run.

What will energy prices be in autumn 2024?

The price cap is adjusted every three months. 

It's going to rise around 10% in the run-up to winter (to over £1,717 per year for a typical household). Industry forecasting experts Cornwall Insight predict it will stay at a similar level into early 2025.

From 1 October, the average unit rates will be:

For direct debit customers:

• Electricity: 24.5p per kWh with a standing charge of 60.99p per day
• Gas: 6.24p per kWh with a standing charge of 31.66p per day 

If you have a prepayment meter, you pay the same standing charge as direct debit customers, but slightly lower rates per kilowatt hour:

• Electricity: 23.68p per kWh with a standing charge of 60.99p per day
• Gas:  6.01p per kWh with a standing charge of 31.66p per day 

This works out as £48 lower than the direct debit cap level.

If you pay when you receive your bills, your rates are the most expensive:

• Electricity: 25.79p per kWh with a standing charge of 67.06p per day
• Gas:  6.57p per kWh with a standing charge of 36.31p per day 

Find out more about: the energy price cap increase from October 2024.

What was the Energy Price Guarantee (EPG)?

The EPG capped the average gas and electricity unit rates between October 2022 and June 2023 when energy prices were especially high. 

It ended in April 2024. Ofgem's energy price cap now applies to those on variable, out-of-contract energy tariffs.

What was the difference between the EPG and the energy price cap?

The EPG was a government-led scheme. It capped average energy unit rates below the rates of the price cap. 

It only applied to unit rates (and not daily standing charges). 

The price cap is set by energy regulator Ofgem. It effectively determines both the unit rates and standing (or daily) charges you pay for your gas and electricity. It's recalculated every three months. 

Until April 2024, your bills were determined by whichever was lower. Now, your bills are determined by the energy price cap (providing you're on a variable, out-of-contract deal).

When the EPG was lower than the price cap, the government paid the difference to your energy company.

Find out more about what help is available if you're struggling to pay your energy bill

Other ways to reduce energy bills

Any cutbacks you can make to your energy usage could help soften the blow of increasing bills. Some ways to do this are:

• Lowering your combi boiler's flow temperature – This small tweak can lower your gas bills while still keeping your home warm. Find out how to adjust your boiler flow temperature.
• Turning down thermostatic radiator valves in unoccupied rooms – Keep the heat you generate in the rooms that need it so that your central heating isn't on for as long. 
• Heat the person, not the home – This isn't possible for all households, but if you are able to, it's usually cheaper to heat yourself rather than the whole house. Look for electric blankets and heaters for quick bursts. 
• Only use white goods efficiently – Try to only put your washing machine and dishwasher on when they're full and use eco settings where possible. Washing at 30^oC or below is usually more energy efficient than hot washes.
• Add loft insulation and draft proofing – Improving your loft insulation is a good way to make your home feel cosier in the winter months and bring down your bills. Draft proofing can be a cheap way to get started.

When it comes to your payments, you might be able to make small savings by opting for paperless bills and managing your account online (as some suppliers charge extra for paper bills). Getting a smart meter installed, or sending regular meter readings, will ensure your bills are accurate. 

Find out more about ways to save on your energy bills