How does the energy price cap work?

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How does the energy price cap work?

A pound sign next to a gas flame and an electric socket

The energy price cap limits how much suppliers can charge you for each unit of electricity or gas you use. 

A grey square with a thick black line around it.

A unit is like a piece or block of energy.

A gas and an electric bill with a red line going up and down over them. At the end, the red line goes up steeply with an arrow head at the end pointing upwards.

The price cap also puts a limit on how much energy suppliers can ask people to pay in standing charges. 

A pound sign next to a calendar dated 10th October

A standing charge is a price you pay every day, even if you do not use any energy that day.

gas pipe

The standing charge pays for the pipes, wires and people that bring energy to your home. 

A gas and an electric bill with a red line going up and down over them. At the end, the red line goes up steeply with an arrow head at the end pointing upwards.

The energy price cap does not limit how much you can spend in total. 

3 grey squares, each with an electric socket which is switched on and a red zig zag line by the socket

If you use more energy, you will have to pay more for your bills. 

An electricity bill

There are lots of things that affect how much you might pay:

a block of flats
  • The type of house you live in
A large house with several chimneys and steps up to the front door.

A bigger, older house with lots of rooms takes more energy to heat and light. 

A block of flats with balconies and grass outside.

A smaller, newer flat with insulation will cost less to heat. 

bricks of a wall and a window. Through the window there is a woman checking her phone, a tv, some food and a bunch of flowers
  • How much time you spend at home
A man wearing a yellow helmet, eye protection and a high visibility jacket. He is holding a clipboard and a pen.

If you go to work every day, it might cost less to heat your home. 

3 people sitting around a table playing a game of Jenga.

If you stay at home every day, it might cost more for heating and lighting. 

a block of flats
  • What items you have in your home 
a grey square with a black border around it. Inside the square is an electric socket which is switched on and a red zig zag symbol over the socket.

Some items you have at home use more energy than others. 

a ventilator

You might need equipment to help you breathe properly. 

an electric wheelchair

You might have a mobility scooter or wheelchair that needs to be charged. 

an electric hoist

You might have a hoist to help you get in and out of bed. 

an electric socket which is switched on and has a red zig zag line beside it

All of these items need energy to work.

a gas flame and an electric socket which is switched on with a red zig zag beside it
  • The type of fuel you use 
a gas flame and an electric socket inside the outline shape of a house

Some people have gas and electricity at home. 

an electric socket which is switched on and has a red zig zag line beside it

Some people only have electricity at home.  

an electric socket which is switched on and has a red zig zag line beside it inside the outline shape of a house

Electricity costs more than gas, so it might cost more for heating and lighting if you only have electricity at home.

calendar dates 1 January, 1 April, 1 July and 1 October.

The energy price cap changes 4 times a year.  It changes on 1 January, 1 April, 1 July and 1 October. 

Energy price guarantee

What is the energy price guarantee?

A calendar showing 1 October.

The energy price guarantee started on 1 October 2022.

A gas and an electricity bill with a red arrow to show the price going up.

The energy price guarantee started because the energy price cap was very high.

A pound sign next to a gas flame and an electric socket.

The energy price guarantee means that you pay less than the energy price cap amount for your electricity and gas. 

A calendar showing the date 31 March 2024.

The energy price guarantee will end on 31 March 2024.

A lady in a wheelchair with her right hand raised and her index finger pointing up

Remember:

3 grey squares, each with a pound sign inside of them.
  • The energy price cap and energy price guarantee is on the price of units.  They do not set a maximum amount for your gas and electricity bills.
3 grey squares, each with an electric socket inside them and a red zig zag beside the socket
  • You will pay more if you use more energy. 

How to get help

a computer screen with an image of a group of people on it and the word welcome above them

You can get help and advice on our website at www.mencap.org.uk/COL

A lady looking unhappy with a thought bubble above her head which has pound notes and coins in it

If you are worried about money, contact our Learning Disability Helpline:

A man holding a mobile phone to his ear
  • Call us Monday to Friday on 0808 808 1111 
A computer screen with an image of an open envelope. Inside the envelope is a sheet of paper with the word email on it
2 hands typing on a tablet to send an email
British Gas Energy Trust logo.

Thank you to British Gas Energy Trust for funding.

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Return to the cost of living page

This information was first published October 2022 and was last updated 17.07.2023.

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