A new price cap for those with standard meters, who are on default tariffs was introduced on 1 January 2019. Default tariffs are suppliers’ basic tariffs and are almost always their most expensive tariff. From 1 April 2019, the price cap has increased to £1,254 for dual fuel.
The cap limits the price consumers pay for each unit of energy that they use. The cap won’t limit a consumer’s total bill – they’ll still pay more if they use more energy. If a person is eligible for a price cap they don’t need to do anything, it will be applied automatically by their supplier.
Eligibility for the price cap
Please note – when some fixed tariffs end (for example after 12 months), suppliers may automatically roll the customer on to a “default” tariff. Therefore, if someone chose to sign up to their tariff 5 years ago, they may still be eligible for the new cap.
Ofgem will revise the level of the cap every 6 months to reflect any changes in the underlying cost of providing electricity and gas. This could go up or down.
While the price cap should save people money on standard variable tariffs, people should still be able to find a better deal on their energy bills by shopping around. This includes finding a better deal with their current supplier. The Citizens Advice comparison tool can help with this.