The new energy price cap came into force on 1 January, saving 11 million customers an average of £76 a year on their gas and electricity bills. It means suppliers had to cut the price of their default tariffs to the level of the cap or below it. The cap affects the unit price of gas and electricity and your actual bill will still depend on how much energy you use.
But the cap still isn’t cheap when compared to switching energy companies. On average those customers on the default price cap could still save £252 (price checked on 22nd January 2019).
The cap will be reviewed in April and October each year and will increase in line with wholesale energy prices. It is expected that the cap will increase by at least £113 (10%) when the cap is increased in April.
That’s a 10% increase which is well above the rate of inflation or pay rises. And the way things are going we could see a similar increase in October.
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