What is the energy price cap?

What's on this page?

• Energy price cap explained.
• What are the current prices per kWh for electricity and gas?
• Are my energy costs capped?
• How much will I pay for energy?
• How much could I pay to run my appliances?
• What is the average energy bill in the UK?
• What is a kilowatt hour?
• What is the Energy Price Guarantee?

To find out exactly what you are being charged you should contact your energy supplier.

Below are the previous, current and upcoming price caps:

*current price cap period

¹2,270 kilowatt hour (kWh) of electricity, 11,500kWh of gas.

From the 1st of July to the 30th of September 2024, the price of electricity and gas per kWh for a customer with typical usage on a default tariff, paying by direct debit, will be:

Figures are rounded to the nearest penny.

*Standing charges are designed to cover the cost of supplying your property with energy. They are usually a fixed, daily amount which doesn’t vary.

For more information about the energy price cap, you can refer to Ofgem’s guide to the energy price cap.

No, energy capping only limits the price of a unit cost of energy. The more units of energy you use, the more you will pay.

The next price cap level will be announced by Ofgem on the 27th of August and will run from the 1st of October until the 31st of December.

The current price cap will continue to run from the 1st of July until the 30th of September 2024.

The energy calculator below will show how the price cap change could affect the cost of using everyday household appliances. Simply update the drop down buttons with your estimated usage to see the costs.

The calculator below will show a cost estimate for the current price cap (July-September 2024), and compare that to the previous price cap (April-June 2024), and the price cap before that (January-March 2023). So you can see how your energy bills might have changed over time.

Please note: The electricity used by domestic appliances can vary depending on make and model, so we’ve used average power ratings. We have also used the price cap figures for a standard variable rate, so this calculator doesn't take into consideration any fixed tariffs or additional costs.

This calculator was last updated on 01/07/2024.

Ofgem’s calculation for an average or medium household is based on a 2-3 bedroom house, with 2-3 people living in it, using 11,500 kilowatt hours (kWh) of gas and 2,700 kWh of electricity a year.

They also estimate what low and high household usage is. Remember, these are average, estimated values, but they can help you get a general idea of how much energy you use, and what it might cost you.

Based on the current Ofgem calculations for energy usage, estimated annual costs for energy under the current July 2024 price cap could be:

*The average annual cost is an estimate based on the July 2024 price cap, for a dual-fuel customer paying by direct debit. 

Based on figures from the BBC.

A kilowatt hour (kWh) is the standard unit used by energy suppliers to calculate your gas and electricity bill. When you hear energy companies talking about unit costs of energy this is usually referring to the kilowatt hour.

You can understand a kilowatt hour in terms of using 1000 watts of power (a kilowatt) in one hour of time. For example, you’d use 1-kilowatt hour of electricity to power a 100-watt halogen lightbulb for 10 hours, as 100 watts x 10 hours of use = 1000 watt-hours or 1 kWh.

If you swapped that halogen bulb for a more efficient LED bulb that uses 10 watts of electricity, you’d get 100 hours of light for the same 1-kilowatt hour of energy. 10 watts x 100 hours = 1000 watt-hours or 1 kWh.

The same principle applies to using gas too.

Ofgem is an organisation that regulates energy suppliers. It sets a maximum price that energy suppliers could charge for each unit of energy. The cap isn’t a cap on how much you spend on energy, it’s a cap on how much each unit of energy costs. The more energy you use; the more you’ll pay.

You can find out more about schemes and other help you might be eligible for here. Alongside this, we have advice available for those needing help with their energy bills.

For more information about the support available from the government including energy saving tips at the ‘Help for Households’ website.

On 1^st October 2022, the UK government introduced the Energy Price Guarantee to help with rising energy costs. It was designed to be a temporary, additional measure to protect consumers from the significant rises in the price of wholesale gas.

The Energy Price Guarantee (or EPG) applies to all households in Great Britain. It is in place until April 2024, but the original energy price cap set by Ofgem has dropped below the EPG. Which means you pay the Ofgem energy price cap rate instead.

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