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Energy Cap January 2019

From the 1st January 2019 the government has introduced a new price cap for customers on default tariffs for their electricity and gas. This typically affects loyal customers who don’t switch their energy suppliers.

What is the energy price cap?

 The cap introduced by the energy regulator, Ofgem, limits the price you pay for each unit of energy that you use.

Will I be eligible?

  •  If you are on a prepayment meter, you won’t be eligible because the prices you pay are already capped.
  • If you actively chose to sign up to your current tariff, you also won’t be eligible.
  • If neither of the above apply, you should qualify for the cap.

How much will eligible customers save?

  • This will vary depending on your personal circumstances and which supplier you are with.
  • Households may also be able to reduce their bills and make long-term savings by improving the energy efficiency of their homes. Simple steps, such as better insulation or heating controls, are a good place to start.

Does it mean I can use as much energy as I like for a fixed price?

  • The cap doesn’t limit your total bill. So if you use more electricity and gas, you will pay more.

Does the cap mean prices won’t go up in the future?

 No. Ofgem will revise the level of the cap every 6 months to reflect any changes in the underlying cost of providing electricity and gas. These could go up or down.

You may not be getting the best deal if you’re on the capped tariff. While the price cap should save people money, you should still be able to find a better deal by shopping around. This includes finding a better deal with your current supplier. The Citizens Advice Comparison told and supplier star rating can help you with this.

Visit our comparison tool at