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Energy Price Cap – How will it affect you?

Posted 27 March 2019

The energy price cap affecting standard variable, or 'default', energy tariffs came into force on 1 January 2019.

What is the default tariff cap?

The default tariff cap (also known as the safeguard tariff) is a limit on the unit rate and standing charge that energy suppliers can charge for standard variable - or ‘default’ - tariffs, and is set by Ofgem, the energy regulator.

Standard variable tariffs are usually the most expensive rates that a customer can be on. If a customer hasn’t switched energy before, or has rolled off a fixed energy deal, they are likely to be on a default tariff.

How much is the rise?

For a typical household on a standard tariff though, the cap means a potential hike of £117/yr, as most suppliers are expected to price within just a few pounds of the new level.

How to avoid the price rise?

Compare and switch – check what tariff you are on and look for a fixed tariff.

  • The price cap only applies if you are on a standard variable rate, but these are the most expensive on the market. At the time of the price cap announcement the £1,254 yearly cost for an average household with the price cap was still nearly £300 more than the cheapest energy deal on the market.

Have you never switched before?

Contact our Home Energy Advice team - we are more than happy to help customers and staff. or call 0161 474 4062

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Page last reviewed 28/03/2019