Ofgem have announced that from today, the 1st April 2021, their price cap will increase. This might mean that your energy bills at home change.
What is the Price Cap?
The energy price cap is a top limit on the price energy suppliers can charge for each unit of energy they provide. It is set twice a year, in April and October, by Ofgem, the Office of Gas and Electricity Markets. Ofgem are part of government, and an independent National Regulatory Authority. Their job is to protect consumers.
The price cap means that your energy supplier can’t charge you more per unit than the cap says. They are allowed to charge you less than the cap.
Who does the Price Cap effect?
The Price Cap benefits everyone who is on a ‘standard variable’ energy tariff, which is a tariff where the price isn’t already fixed. This is usually the most expensive option and is often the default tariff that a supplier may put you on. These ‘standard variable’ energy tariffs are available whichever way you pay, whether that is direct debit from your bank account or topping up your meter with a key or card. However, cheaper fixed tariffs should also be available whichever way you pay, so we would recommend you check with your supplier that you are on the cheapest deal they can offer you.
The Price Cap change might mean your bills go up. This means, now would be a good time to think about bills and check your energy usage. Perhaps switching to a different supplier or tariff could reduce your bills? As the weather is warming up, could you have your heating on for a shorter time each day? Are there appliances on standby overnight that you could switch off, to save money? We have written an article on our website which includes more ideas for ways you could save money – click here to read it.
Remember – if you are worried about your energy bills, contact us – we can help you find out if there are ways you can save money.
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