The Ofgem price cap limits how much suppliers can charge for unit of energy. Understanding it helps you make better energy decisions.
How the Cap Works
The cap sets a maximum suppliers can charge per unit of gas and electricity. It changes quarterly. It covers the unit rate and standing charge, but total bills vary based on usage.
- Updates every 3 months
- Covers unit rate + standing charge
- Your actual bill depends on usage
Should You Fix?
Sometimes fixed deals beat the cap. When wholesale prices drop, fixes become cheaper. Compare regularly. But don't automatically assume fixes are better.
Is the cap good for me?
It prevents worst-case pricing but doesn't guarantee the best deal. Always compare prices.
- energy
- price cap
- ofgem
- utility
- UK