The 1st of April brings a change of prices for all energy suppliers, but why does the energy industry operate like this, and what does it mean for you?
Why do we have a price cap?
Simply put, the Energy Price Cap was introduced to ensure that customers get a fair deal, and to prevent prices being increased by energy generators and suppliers.
Over the last 5 years, the UK energy industry has been volatile, due to many factors including geopolitical tensions and changes in the energy industry landscape, with many suppliers going out of business. In 2024, OFGEM made a decision to cap the rate that energy prices could increase and ensured that changes to energy prices could only happen at set times. Initially, this was set at twice a year, however in 2025, the decision was made to change this to every 3 months, so that the price cap could reflect seasonal changes.
How is the price cap measured?
The price cap is announced as a “typical” annual energy cost, this is based on a three bedroom property, this makes the change in cost understandable for people.
As a customer, the reduction occurs on your unit rates and standing charges, and we’ll be sending you communications via letter or email confirming what your previous rates and new rates are so you can see the difference.
What’s happening in April?
As of the 1st April, the price cap is dropping from £1,758 per year to £1,641 per year. The annual cost will drop by £117 per year on average, meaning customers will save around £11 per month on average on their energy bills.
Why do we have a price cap?
Simply put, the Energy Price Cap was introduced to ensure that customers get a fair deal, and to prevent prices being increased by energy generators and suppliers.
Over the last 5 years, the UK energy industry has been volatile, due to many factors including geopolitical tensions and changes in the energy industry landscape, with many suppliers going out of business. In 2024, OFGEM made a decision to cap the rate that energy prices could increase and ensured that changes to energy prices could only happen at set times. Initially, this was set at twice a year, however in 2025, the decision was made to change this to every 3 months, so that the price cap could reflect seasonal changes.
How is the price cap measured?
The price cap is announced as a “typical” annual energy cost, this is based on a three bedroom property, this makes the change in cost understandable for people.
As a customer, the reduction occurs on your unit rates and standing charges, and we’ll be sending you communications via letter or email confirming what your previous rates and new rates are so you can see the difference.
What’s happening in April?
As of the 1st April, the price cap is dropping from £1,758 per year to £1,641 per year. The annual cost will drop by £117 per year on average, meaning customers will save around £11 per month on average on their energy bills.
Last edited by PeteC; 7 Hours Ago at 11:51.
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