Households face a £ 21 improve in vitality prices underneath new worth cap plans – however most are already overpaid by £ 100
The energy price cap is the maximum amount that a customer with typical energy consumption can charge at a standard or standard energy tariff per year. The price ceiling is set every six months by the energy regulator Ofgem. Currently the cap is £ 1,042 per year – although this is not the maximum total anyone will pay as that number is based on a typical energy consumer and some will use more or less gas and electricity.
However, Ofgem has proposed increasing the price cap by £ 21 between April 1 and September 30, 2021. This is intended to help suppliers whose costs have increased as a result of the pandemic, particularly as many households have struggled to pay bills and ran into debt.
Ofgem will now consult these proposals until December 21st. However, it should be noted that even if the £ 21 increase is approved, the level of the cap itself may go up or down as Ofgem recalculates this every six months based on the situation. So it's not just about the cap increasing to £ 1,063.
However, a similar increase has not been proposed for customers with standard tariff prepayment meters. Here the cap is currently £ 1,070 per year, although this is again recalculated every six months.
But don't rest on your laurels to see what happens – see if you can save bills now. If you have a standard plan, you can probably already save hundreds by doing a quick market comparison through our free Cheap Energy Club.