New energy price cap comes into effect
Bills may be cheaper for some, but many could still save by switching
The new lower energy price cap is now officially in effect.
This will mainly affect the nearly 11 millions customers across the UK who receive their energy by way of a standard variable tariff, their provider’s default offering.
On average, SVT customers will see their yearly energy bills drop by £75 as price cap falls from £1,254 to £1,179.
The price cap for those on prepayment energy tariffs has also been reduced today, going from £1,242 to £1,217.
Although plenty of customers will see cheaper bills, many more could still save money by using our online comparison service to switch to a new fixed price energy deal.
Ofgem’s price cap limits the amount you can be charged per single unit of energy so if your usage is high you’ll still be charged more.
Between 1st January 2018 and 30th June 2019, 10% of customers who switched their gas and electricity suppliers with EnergyHelpline and their partners saved £452 or more.
The energy price cap was first introduced back at the start of January 2019 with the aim of protecting those on SVTs against sudden fluctuations in price.
It’s reviewed twice a year in February and August, with any adjustments coming into effect in April and October.