The price cap
Direct Debit customers
- Typical gas bill went down by 12.6% - including a £5 decrease in the standing charge.
- Typical electricity bill went down by 3% - with no change in the standing charge.
Receipt of Bill customers
- Typical gas bill went down by 12.3% - including a £5 decrease in the standing charge.
- Typical electricity bill went down by 2.9% - with no change in the standing charge.
- Typical gas bill went down by 12.9% - including a £1 decrease in the standing charge.
- Typical electricity bill went down by 3.9% - including an £1 decrease in the standing charge.
The price cap means the price per unit of energy you pay and your daily standing charge can't go above the level set by Ofgem. It’s not a cap on your energy bill, which will rise or fall depending with how much energy you use. The cap is updated by Ofgem twice a year, depending on how the cost of supplying energy to your home changes.
Which tariffs are affected?
The tariffs affected by the price cap were:
- Standard Variable
- Cap Tracker December 2020
- Cap Tracker December 2020 v2
If you're on any of our other fixed tariffs, you won’t be affected until that tariff ends.
Why have prices changed?
Our gas and electricity prices have changed because of the price cap, which has been put in place to protect customers on default tariffs, or on tariffs with (or linked to) standard variable rates. The cap is a limit set by Ofgem on the cost of gas and electricity, which became effective from 1 April 2017 for prepayment customers and 1 January 2019 for customers paying by Direct Debit or Receipt of Bill. It’s then updated every April and October to reflect changes in industry costs - such as wholesale, network and policy costs.
What makes up your energy bill?
Network and policy costs are making up a bigger and bigger part of your electricity bill. Here’s how a typical bill is made up:
Electricity bill costs
Gas bill costs
These breakdowns are based on an estimate of costs at Ofgem’s annual average consumption - 2,900 kWh for standard rate electricity and 12,000 kWh for mains gas, and also market average margin returns as per Ofgem’s methodology of calculating the default tariff price cap. Learn more about what makes up your energy bill.
Questions we get asked
What is the price cap?
How can I find out how my prices have changed?
You’ll see your new prices on your bill or statement from 1 October.
Will my Direct Debit change?
Have prices come down?
Am I affected if I am on a fixed tariff?
Will my Smart meter be updated with the price change?
If you have a Smart meter, your Smart energy display (SED) will automatically update with the new prices from 1 October.