How does the energy price cap work?
How does the energy price cap work?
The energy price cap limits how much suppliers can charge you for each unit of electricity or gas you use.
A unit is like a piece or block of energy.
The price cap also puts a limit on how much energy suppliers can ask people to pay in standing charges.
A standing charge is a price you pay every day, even if you do not use any energy that day.
The standing charge pays for the pipes, wires and people that bring energy to your home.
The energy price cap does not limit how much you can spend in total.
If you use more energy, you will have to pay more for your bills.
There are lots of things that affect how much you might pay:
- The type of house you live in
A bigger, older house with lots of rooms takes more energy to heat and light.
A smaller, newer flat with insulation will cost less to heat.
- How much time you spend at home
If you go to work every day, it might cost less to heat your home.
If you stay at home every day, it might cost more for heating and lighting.
- What items you have in your home
Some items you have at home use more energy than others.
You might need equipment to help you breathe properly.
You might have a mobility scooter or wheelchair that needs to be charged.
You might have a hoist to help you get in and out of bed.
All of these items need energy to work.
- The type of fuel you use
Some people have gas and electricity at home.
Some people only have electricity at home.
Electricity costs more than gas, so it might cost more for heating and lighting if you only have electricity at home.
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?
The energy price guarantee started on 1 October 2022.
The energy price guarantee started because the energy price cap was very high.
The energy price guarantee means that you pay less than the energy price cap amount for your electricity and gas.
The energy price guarantee will end on 31 March 2024.
Remember:
- The energy price cap and energy price guarantee is on the price of units. They do not set a maximum Maximum means the highest amount, or greatest value that something can be. amount for your gas and electricity bills.
- You will pay more if you use more energy.
How to get help
You can get help and advice on our website A website is a page you can go to on the internet like Google or YouTube. at www.mencap.org.uk/COL
If you are worried about money, contact our Learning Disability A learning disability is to do with the way someone's brain works. It makes it harder for someone to learn, understand or do things. Helpline:
- Call us Monday to Friday on 0808 808 1111
- Email us at helpline@mencap.org.uk
Thank you to British Gas Energy Trust for funding.