[Rebecca]

You may have seen a post last week informing all members that the price cap is going down (some news we will all be happy about). 🤩🤗

Ofgem has announced a change to the energy price cap which means you may see changes in what you pay for your energy from 1 July 2023. The energy price cap is now lower than the Energy Price Guarantee level, so for lots of customers, the discount isn’t needed. But don’t worry – the Energy Price Guarantee will stay in place until 2024 just in case energy prices rise significantly again.

Here, we break down all the most popular FAQs that you need to know 💬👍

What is the energy price cap?
The cap sets a limit on the amount suppliers can charge for each unit of gas and electricity you use. It is calculated based on the cost’s efficient suppliers face.

Wholesale costs of energy are going down, so you’ll now see this reflected in what you pay. From 1 July, a typical household will see their energy costs fall to £2,074 per year – but don’t forget what you pay will always depend on how much energy you use.

Who sets the price cap?
Ofgem is the independent regulator and is responsible for calculating the price cap, they are the sole decision maker. We then review our prices and make sure what you’re paying is in line with the price cap Ofgem sets.

When will new prices be introduced?
1 July.

What is the EPG?
The Energy Price Guarantee was announced to help households with energy costs because wholesale prices reached unprecedented levels. The Energy Price guarantee limits the amount you can be charged per unit of gas and electricity. Since October 2022, the Energy Price Guarantee has saved a typical household around £1,500.

Will I get the EPG discount from 1 July?
From 1 July, non-prepayment meter households will no longer receive the EPG discount on their bills. This is because the energy price cap is now lower than the EPG level. The Energy Price Guarantee will stay in place until 2024 just in case prices rise significantly again – so you’ll be protected if costs go up. For Pay As You Go customers, from July – September 2023 the Energy Price Guarantee will be applied to Pay As You Go gas unit rates – this makes sure that Pay As You Go customers don’t pay more than Direct Debit customers. If you need the EPG discount applied to your unit rates, this happens automatically and there’s nothing you need to do.

What is the PPM Levelisation?
The Government are keeping the EPG discount in place for Pay As You Go gas unit rates, to make sure that, from 1 July, the average prepayment meter will no longer pay more for their bills than customers paying for their energy by Direct Debit.
From July – September 2023 the Energy Price Guarantee will be applied to Pay As You Go gas unit rates – this makes sure that Pay As You Go customers don’t pay more than Direct Debit customers. This will save the average Pay As You Go customer around £21 a year.

Is the energy price cap or the Energy Price Guarantee an absolute cap on energy costs?
No. What you pay will always depend on your usage, so we do all we can to help you keep costs down. We’ve got lots of support options and advice available on our website.

For anything else regarding the Energy Price Guarantee, please click here.

Was this article helpful? Let us know in the comments section below 👇

[Dave2912]

The price cap has gone down by around 17% (£2500 down to £2100)

but my tariff has gone down by less than 8%

Not quite sure how that works...