What is the energy price cap?
Ofgem, the energy regulator, sets the energy price cap. The cap is a limit on the maximum amount suppliers can charge you for each unit of gas and electricity you use. It also sets a maximum daily standing charge (what you pay to have your home connected to the grid). It changes every three months.
What's changing from 1 January 2025:
Under the energy price cap, there's no actual cap on what you pay. Instead it's a cap on the maximum standing charge and unit rates your provider can charge, so if you use more, you pay more.
You are covered by the energy price cap if you pay for your electricity and gas by either:
- Standard credit (payment made when you get your electricity and gas bill)
- Direct Debit
- Prepayment meter
- Economy 7 (E7) meter.
Exact unit rates vary by where you live and how you pay for your energy.
What are your options?
It’s worth comparing energy providers, as there are now viable fixed options that are cheaper than the price cap. These options may not be available for long, so consider finding the best price for your use and location through a market comparison site such as Martin Lewis’ Money Saving Expert (MSE) Cheap Energy Club. There’s a specific article on the MSE website that covers what you need to consider when deciding whether to switch or not.
Need extra help?
For more information about the support that’s available to help you with energy costs, you can visit our ‘your energy, our support’ webpage.
We’ve also got free support available to help you manage your money through our Better Days programme. Our myMoney partners, Citizens Advice, can provide you with debt advice. Visit our myMoney webpage to find out more.
