Energy price cap April 2022: What you need to know

Here's everything you need to know about the April 2022 price cap change.

On 1st April 2022, Ofgem will raise the energy price cap by £693 from £1,277 to £1,971 due to rising wholesale energy costs. This may unfortunately result in more expensive energy bills for millions of customers across the UK.

There is an incredibly simple solution however. You can take back control of your energy bills by using Energy Helpline to switch to one of the many better deals out there. 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 millions of households in the UK who currently get their gas and electricity via default tariffs.

It means that from 1st April 2022, the maximum amount that suppliers can charge customers on default tariffs for their energy will increase. The cost of your energy bills could rise to reflect this.  

Why is the energy price cap needed?

Ofgem introduced the cap back in January 2019 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.

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.

Will the energy price cap affect prepayment customers?

Yes, there is a separate price cap for those customers on prepayment meters which works in exactly the same way.

On 1st April 2022, the prepayment energy cap will rise by £708 from £1,309 to £2,107.

Will my energy bills be more expensive as a result of the higher price cap?

Yes, this new, higher price cap could see you paying up to £693 more for your energy.  

It’s important to note that Ofgem are increasing the amount that’s charged per single unit of energy for default tariffs so depending on your usage, your bills may still fluctuate.  

Switching is the best way to lock in a great price for your energy

Important: As of February 2021, the energy market has become highly unpredictable, and switching may not be the best course of action for many people. It depends on individual circumstances and the kinds of prices being offered to you. As the market continues to shift and change, we will do our best to react quickly and provide you with the latest information.

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.

Find a great-value deal 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.

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  1. Enter your details

    Answer a few quick questions and then we can find you some great energy deals based on your location and usage.

  2. Compare our best deals

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  3. We’ll handle the switch

    With us there’s no obligation, but if you want to take one of the energy deals then we’ll handle it all for you free of charge.


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