On 1st April 2020, Ofgem will lower the energy price cap by £17 from £1,179 to £1,162.
While this could mean you’ll see cheaper bills, you shouldn’t just rely on the price cap to help you save on your energy. There’s currently deals on the market which could save you hundreds of pounds more!
Take control of your bills and set your own price cap by switching to one of the many better deals out there. Don’t worry, switching with Energy Helpline is incredibly simple. It’s free to do and we’ll handle the entire switch for you without any interruption to your current supply.
What is the energy price cap?
The energy price cap mainly affects the 11 million customers^ in the UK who currently get their gas and electricity via a standard variable tariff (SVT) or your supplier’s default option.
It means that from 1st April 2020, customers on SVTs will no longer pay more than £1,162 for their energy.
This doesn’t automatically guarantee you cheaper energy bills, however.
Why is the energy price cap needed?
Ofgem introduced the cap back in January 2019 in an effort to try and protect SVT customers against unexpected price rises.
SVTs are a very poor value option for energy customers and are likely to be the most expensive deal offered by your supplier.
Customers who take out an SVTs from one of the Big Six suppliers (British Gas, npower, EON, Scottish Power, SSE and EDF Energy) will pay an average of £220 more over the course of the year than they would if they had switched to a less expensive deal↟.
The biggest issue with SVTs is that there’s no limit to the amount that can be charged per single unit of energy. This means that your bills could really fluctuate in price from month to month depending on the current state of the market and if your energy supplier decides to hike its prices.
Will the energy price cap affect prepayment customers?
Yes, there is a seperate price cap for the 4 million customers on prepayment meters which works in exactly the same way.
On 1st April 2020, the prepayment energy cap will be lowered from £1,217 to £1,200.
Will my energy bills be cheaper as a result of the lower price cap?
You could see cheaper energy bills as a result of the price cap
However, it’s important to note that Ofgem are only capping the amount that be charged per unit of energy for SVTs so if you start to use more energy, you will see your bills increase.
This is a particular concern in light of the ongoing COVID-19 outbreak as millions of UK households are now required to stay at home for the foreseeable future.
Switching is the best way to lock in a great price for your energy
You might think it’s easier to rely on Ofgem’s price cap but in fact creating your own price cap is just as simple and could save you potentially hundreds of pounds!
Think of your energy in the same way as you do your car insurance or broadband, if you felt like you were paying too much for either of those services you would look around for a new deal. It’s really important to do the same with your energy!
Save up to £461* with Energy Helpline
Click here to start your switch with Energy Helpline. It’s free to use and all you need to do is enter your postcode and briefly describe your current supply to see the range of great deals available to you.
Don’t delay, create your own price cap today!
All figures correct as of 31/03/2020.
^Ofgem State of the Market Report 2019.
↟This is Money 2019. Households are overpaying on their energy bills by £220 a year as the Big Six set tariffs at the price cap limit.
*10% of customers switching their gas and electricity suppliers with energyhelpline (and their partners) between 1st Jan 2019 and 30th September 2019 saved £461 or more.