Energy Price Guarantee FAQs

We know many people will want to better understand the Energy Price Guarantee before October 1. This article answers some of the most common questions.

You can also find out more from our factsheet.

Q) Is my energy bill now capped at ￡2,500?

No. ￡2,500 is the expected annual average household cost based on the Energy Price Guarantee from 1 Oct. Your bill could be more or less than this. For example, if you use more gas & electricity than an average 3 bedroom household, your bill may be more than ￡2,500.

Q) How does the Energy Price Guarantee work?

The Energy Price Guarantee limits the price per unit of gas or electricity that suppliers can charge customers. From 1 October, the Energy Price Guarantee will replace the energy price cap which had previously been set by Ofgem and was due to be ￡3,550 for an average household. Under the Energy Price Guarantee, it will now be ￡2,500.?

This new figure takes account of temporarily removing green levies, worth around ￡150, from household bills.

Q) Does the new Energy Price Guarantee affect the ￡400 Energy Bills Support Scheme?

No. All eligible households will still get a ￡400 discount to their bills in addition to benefiting from the Energy Price Guarantee. Households will get the discount in 6 monthly instalments from 1 October. The most vulnerable households will continue to receive ￡1,200 of other support.

Find out more about the Energy Bills Support Scheme.

Q) Do I need to contact my energy supplier to benefit from the Energy Price Guarantee?

No, your energy supplier will apply the Energy Price Guarantee automatically to households on a standard gas or electricity contract. This will be the case for 99% of households.?

Q) Will I still benefit if I am off-grid?

Off-grid households, such as park homes or those in heat networks, will be outside the scheme. We have committed to ensuring they will receive comparable support soon. This accounts for less than 1% of households.

Q) Will my bill double, or even triple?

No. The amount you pay per unit of gas or electricity will be limited so your final bill will depend on how much energy you use.?Check average prices for different types of household (detached, bungalows, flats and more) in our factsheet.

Q) I’m on a prepayment meter, how will the Energy Price Guarantee work for me??

Prepayment meter customers will also benefit from the Energy Price Guarantee.

Q) Will I benefit if I pay my landlord for energy based on how much I use?

Yes. Your landlord must comply with the maximum resale price rules, which say they must not make a profit. If the Energy Price Guarantee saves your landlord money, it should also save you money.

Q) Will I benefit if I pay my landlord for energy as part of an 'all-inclusive' rent and bills payment?

Yes. We are encouraging landlords to come to an agreement with you on the Energy Price Guarantee in line with the arrangement in your tenancy agreement. We are exploring a full range of options to ensure this happens, including using planned emergency legislation.

Q) Do I need to switch my tariff to benefit from the Energy Price Guarantee?

Energy suppliers will adjust standard variable tariffs and fixed tariffs automatically. You won't need to take any action to benefit from the Energy Price Guarantee.

Check the factsheet for more information.