You may have heard about a new Energy Price Cap that launches on 1 January 2019. Here we explain what it means for all of us.

If your gas and electricity is supplied on a Standard Variable tariff you’ll see some big changes with the Price Cap as it’s been designed for you.

Even if you’re on a fixed tariff, it’s still worth understanding it as it could still affect you. Why? Well if you don’t move to another fixed tariff at the end of your fixed term, then you’ll automatically move to the Standard Variable tariff which has this Energy Price Cap.

What is the Energy Price Cap?

The Price Cap has been created by Ofgem, the energy regulator. They were tasked by the government with setting a limit charged for each unit of energy used by customers on Standard Variable tariffs.

Why is the Energy Price Cap good news?

Ofgem estimates that across the industry, the Energy Price Cap should save a typical household around £76 per year on average.

While it’s good news that the Cap offers certainty over the price, it comes with an important note of caution. The Cap price can go up or down up to twice a year. This is because Ofgem can update the Price Cap to reflect changes in industry costs – such as wholesale energy, networks and policy costs.

Many people believe they’ll be able to use as much energy as they like and not have a bigger bill

Unfortunately, this isn’t true. The Price Cap only limits the amount you pay for each unit of energy. If you use more units of gas or electricity than a typical household, your bills will be more. If you use less, your bills will be lower.

We have plenty of expert hints and tips to help you to use less energy.

It’s easy to stay informed and on track

Keeping track of your bills is easy. If you’re on our Standard Variable tariff we’ll let you know whenever there are any changes because of updates to Ofgem’s Price Cap.

Plus, as we’re continually improving our online account system and our app, it makes managing your energy accounts even easier, wherever you are and whenever you want.

You have a great choice: here are you options

If you want the flexibility of being able to move tariffs at any time without exit fees, you may decide that staying on a Standard Variable tariff is the right choice for you.

If you want certainty or protecting yourself from price increases, you may prefer to fix your price for longer with an npower fixed term, fixed price deal.

Whichever npower deal you’re on, you can still get your free 1-year’s membership of Take Time Out offering discounts every day on 1000s of top brands.

You’re helping us to help others

npower is not just about the energy. By being with npower, you’re helping us to help others through a range of partnerships. Families, communities and environments all benefit from these including Macmillan Cancer Support, Trees for Cities and the Superhero Series – a mass participating sports series for disabled people and their families.

If you’ve any questions or you just want to find out more about the Energy Price Cap or anything else, just get in touch: we’re always here to help you.