On 1st October 2020, Ofgem lowered the energy price cap by £84 from £1,126 to £1,042. This is the lowest it’s been since it was first introduced in January 2019.
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 default tariffs.
It means that from 1st October 2020, customers on default tariffs will no longer pay more than £1,042 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 those customers on default tariffs against unexpected price rises.
One such example of a default tariff is the standard variable tariff or SVT. SVTs are a very poor value option for energy customers and are likely to be the most expensive deal offered by your supplier. In fact you could save
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 separate price cap for the 4 million customers on prepayment meters which works in exactly the same way.
On 1st October 2020, the prepayment energy cap will be lowered from £1,164 to £1,070
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.
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 £497* with Energy Helpline
Start your switch with Energy Helpline today. 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 07/08/2020.
^Ofgem State of the Market Report 2019.
*£497 is the minimum savings of the top 10% of savers who switched with energyhelpline in the period between 1st Nov 2019 and 30th April 2020.