Energy prices - what might you be paying with the current price cap in effect?

Do you know how the price cap affects your energy bill?

GoCompare author
Updated 22 September 2022  | 2 mins read

It’s been hard to escape the news of skyrocketing energy prices amid the current energy crisis, and since the announcement of October’s energy price cap, millions of UK households are concerned about rising energy bills.

The energy price cap, set by energy regulator Ofgem, is reviewed four times a year and can go up or down depending on the wholesale cost of energy, and so affects those on standard variable tariffs (SVTs). The most recent price cap comes into force on 1 October 2022, with unit prices reaching £0.52 per kWh for electricity and £0.15 per kWh for gas. This would be around £3,549 per year for an average dual fuel direct debit customer.

In response to the drastic increase in the cost of energy, Prime Minister Liz Truss announced an ‘energy price guarantee’ (sometimes called the ‘October price freeze’). This guarantee means that the maximum unit price suppliers can charge those on SVTs will instead be 34.0p per kWh for electricity and 10.3p per kWh for gas. This is an average of £2,500 per year for dual fuel direct debit customers.

The price cap and the energy price guarantee don’t apply to everyone, but it will apply to you if you’re on a default tariff (an SVT). If you’re unsure of the tariff you’re on, check your latest energy bill or speak to your supplier.

How will the price cap affect how much you pay for your energy?

Use our handy calculator to find out. Simply input how much you typically pay per month for your energy and we’ll show you how your bills are predicted to rise when the energy price guarantee comes into effect.

Energy price hikes: what will you pay?

Ready reckoner for the millions on a standard rate, following the energy cap rise.

What do you typically pay per month
? Typically (but not always) your monthly direct debit

I pay £
per month

What can I do to combat rising energy prices?

Spiralling energy costs have forced many suppliers to remove their tariffs, so shopping around to find a better deal isn’t a feasible option in the current energy crisis.

If you need help with your energy bills, you may be entitled to support from the government or even your current supplier.

If you don’t qualify for assistance and can’t switch to a cheaper tariff, then reducing your energy consumption can help to save money and improve your home’s energy efficiency. Simple energy saving tips include turning your thermostat down, draught proofing your home and turning off stand-by appliances.