The price cap
Direct Debit customers
- Typical gas bill will go up by 9.4% - including a ￡2 increase in the standing charge.
- Typical electricity bill will go up by 9% - including a ￡2 increase in the standing charge.
Receipt of Bill customers
- Typical gas bill will go up by 9.2% - including a ￡2 increase in the standing charge.
- Typical electricity bill will go up by 8.9% - including a ￡2 increase in the standing charge.
- Typical gas bill will go up by 8.3% - with no change in the standing charge.
- Typical electricity bill will go up by 8.0% - including a ￡1 increase in the standing charge.
The price cap means the price per unit of energy you pay and your daily standing charge can't go above the level set by Ofgem. It’s not a cap on your energy bill, which will rise or fall depending with how much energy you use. The cap is updated by Ofgem twice a year, depending on how the cost of supplying energy to your home changes.
Which tariffs are affected?
The tariffs affected by the price cap were:
- Standard Variable
But if you’re affected, you’ll receive a letter around the end of February about how the 1 April 2021 price change affects you. You’ll also see your new prices on your bill or statement.
If you're on any of our other fixed tariffs, you won’t be affected until that tariff ends.
Why are prices changing?
Our gas and electricity prices have changed because of the price cap, which has been put in place to protect customers on default tariffs, or on tariffs with (or linked to) standard variable rates. The cap is a limit set by Ofgem on the cost of gas and electricity, which became effective from 1 April 2017 for prepayment customers and 1 January 2019 for customers paying by Direct Debit or Receipt of Bill. It’s then updated every April and October to reflect changes in industry costs - such as wholesale, network and policy costs.
What makes up your energy bill?
Network and policy costs are making up a bigger and bigger part of your electricity bill. Here’s how a typical bill is made up:
Electricity bill costs
Gas bill costs
These breakdowns are based on an estimate of costs at Ofgem’s annual average consumption - 2,900 kWh for standard rate electricity and 12,000 kWh for mains gas, and also market average margin returns as per Ofgem’s methodology of calculating the default tariff price cap. Learn more about what makes up your energy bill.
Questions we get asked
What is the price cap?
How can I find out how my prices are changing?
If you’re affected by the price cap, you’ll receive a letter around the end of February, telling you how the 1 April 2021 price change affects you. You’ll also see your new prices on your bill or statement.
Will my Direct Debit change?
If you pay by Direct Debit, we automatically review your account twice a year. And if you’re paying too much or too little for the energy you’re using, we’ll take this and the price change into account at your next Direct Debit review.
But you don’t have to wait for your next review - just log in on or after 14 February and check you’re on track with your Direct Debit payments, and we’ll tell you if you’re paying the right amount to cover the cost of the energy you’re using, based on the new prices.
Are prices going up or coming down?
From 1 April 2021, most customers on our Standard Variable tariff will see their energy bills go up. You'll receive a letter which will tell you how you’re affected.
Am I affected if I am on a fixed tariff?
Will my Smart meter be updated with the price change?
If you have a Smart meter, your Smart energy display (SED) will automatically update with the new prices from 1 April when they become effective.