Every 6 months, OFGEM announce a new energy price cap. This is the price cap information for April 2021.
What exactly is the energy price cap?
The price cap was put in place to protect energy consumers who don’t switch to a cheaper energy tariff. If you are on a standard energy tariff, this will apply to you. Standard energy is generally the most expensive. It is classed as the default tariff. The price is set to a maximum price the energy supplier can charge you for each KWH of energy you use. This applies to both gas and electricity.
Does this mean you are paying a cheaper price when you are on the price cap?
No, it simply means the suppliers cannot charge you anything they want. If the price cap was not introduced, people who don’t switch supplier would just keep paying whatever the supplier wanted to charge.
Is the price cap a good idea?
It is a good idea because it protects almost half the gas and electricity customers. Although customers could get a cheaper price by switching supplier, half the energy customers choose to stick with the most expensive tariffs.
Would it be cheaper to switch to another tariff rather than stay on the capped price?
Yes, online tariffs are cheaper to encourage new customers to join them.
What is the new price cap set at?
The price has increased by a massive £96 for a standard credit meter, and £87 for prepayment meters. This means the price for a standard credit meter will go from £1,042 to £1,138. A prepayment meter will go from £1,070 to £1,156
What is the difference between capped prices and online discounted prices?
With a standard credit meter, if you are paying the new capped price of £1138, you could get an online tariff for around £928.
Are you paying a different amount to the figures shown?
Figures shown are not based on any personal usage. These prices are calculated by using the national average of 2900 KWH for electricity and 12000 KWH for gas. Although this is a fairly typical example, your prices will be different as they will be based on your own personal energy consumption.
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