What is the energy price cap?

The energy price cap does not apply to all energy consumers.

This Is apply if:

  • You are on a default energy tariff, regardless of how you pay your bills.

A default energy tariff, according to Ofgem, is the most base tariff proposed by an energy supplier. The most common type is a “variable standard” fare. This means that the amount you pay is subject to price changes, although your supplier must write to confirm any changes with a notice period. A standard variable price cannot be higher than the ceiling price.

Energy providers have different names for their default tariffs. If you are unsure of your tariff, your energy supplier can tell you.

The ceiling price does not apply if:

  • You are on a fixed-term energy tariff (i.e. a tariff with a fixed end date).
  • Your rate is exempt from price caps, for example, certain green and special rates based on time of use.

If you are unsure of your rate, check your energy bill or contact your energy supplier. If your provider recently went bankrupt and you’ve been transferred to a new provider, chances are you’re on a standard variable rate. Similarly, if you are coming to the end of a fixed-term contract, or are about to do so, you are likely to be on a standard variable rate or transfer to it.