The current Energy Crisis resulting from the current conflict in Ukraine has meant gas and electric prices have been significantly higher over the last year and will continue to be higher than usual going forward, meaning many people are now struggling with their energy bills.
Ofgem are the governing body for the sale of energy, and they manage the Energy Price Cap which sets the maximum price energy companies can charge for every unit of electricity or gas you use. The Energy Price Cap is not a limit on your total bill.
This Energy Price Cap is updated every 3 months to reflect the changing wholesale price of fuel. This is to prevent more energy companies from going bust, which usually results in a big price increase for consumers.
The Energy Price Guarantee was introduced in October 2022 to protect consumers from the rising Energy Price Cap. This placed a limit on how much consumers would pay for each unit of gas and electricity.
While the Energy Price Cap is higher than the Energy Price Guarantee, the government will pay the difference to energy companies. The Energy Price Guarantee was set at £2,500 for the average household bill until the end of June 2023. After this month it is expected that the Energy Price Cap will fall below this amount and savings will be passed onto consumers.
If you’re worried about the crisis and what this means for your energy bills, please see all of the support we have available on this page.