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Energy price cap comes into force

  • 20/12/2018

This article is over a year old

From 1 January the cap will be in place for three months

piggy bank on radiator

The energy price cap of £1,136 a year, for someone with typical use on a default tariff, is coming into force from 1 January 2019 onwards.

The new cap is going to save 11 million customers an average of £76 a year on their gas and electricity bills.

The cap means that suppliers will have to cut their prices to the level of or below the cap.


Since the cap has been announced, a number of commentators have added their concerns.

The biggest concern is that the cap does vary by region, payment method and supplier.

Additionally, if you are using a lot of energy, you will still pay more. Martin Lewis, founder of MoneySavingExpert, said this means it is not really a cap on the price you pay, but rather a cap on the rate that you will be charged.

From 1 April 2019, the cap is also likely to rise to £1,250. This is because the initial cap only lasts three months and it is reviewed every six months after.

Need help with your bills?

If you are struggling with your energy bills, you may be able to get a grant to help from a fund such as:

  • EDF Energy Trust
  • British gas Energy Trust
  • E.ON Energy Fund
  • Npower Energy Fund
  • ScottishPower Hardship Fund
  • United Utilities Help to Pay social tariff

You may also be eligible for help through other schemes, such as:

Switching supplier is also a quick and easy way to reduce your bill by up to £500 a year.

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