On 1 January 2019, the energy price cap comes into effect. The price cap limits the amount you will pay for each unit of gas or electricity that you use but doesn’t limit your total bill. The cap will be revised by Ofgem every six months and the cap may therefore go up or down in future.
You will not be eligible for the price cap if:
- you buy your electricity and/or gas using a prepayment meter - this is because the prices that you pay are already capped.
- you have actively signed up to your current tariff – the terms and conditions around price, exit fees etc. you signed up to will continue to apply.
If you are eligible, the price cap will be automatically applied to your tariff from 1 January 2019.
While the price cap should save you money (the amount will depend on your personal circumstances and which supplier you are with) you are still likely to be paying more than you need to as the cheapest deals on the market are way below the cap.
You should therefore be able to find a better deal on your energy bills by shopping around. This includes finding a better deal with your current supplier. You can get further information and help from Citizens Advice’s comparison tool and supplier star rating.
You may also be able to reduce your bills and make long-term savings by improving the energy efficiency of your home. Simple steps, such as better insulation or heating controls, are a good place to start. The Department for Business, Energy and Industrial Strategy’s webpage on energy saving, and energy grants calculator have further information.
You may also like to check out these Affordable Warmth scheme offers from E.ON.