Ofgem has announced the price cap will decrease to £3,280 for customers on a standard variable tariff from 1 April 2023. This won't affect what customers pay for each unit of electricity or gas as it's limited by the government’s Energy Price Guarantee, however, we thought it was important to keep you all updated as it's likely you will still see an increase in what you pay.
What's the price cap?The price cap is the maximum price per unit an energy supplier can charge you for your energy. It also includes the maximum they can bill you for your standing charge too. The price cap figure is based on an average household usage, however, you may pay more or less depending on your own household's energy consumption.
The government introduced the price cap in 2019 to protect consumers from paying too much for their energy. It's set by the energy regulator Ofgem and reviewed four times a year.
What's changing in the April 2023 price cap?At the moment the price cap is set at £4,279. This came into effect on 1 January and will end on 31 March. Ofgem announced the price cap is changing on 1 April. Standing charges will increase slightly and unit rates will decrease. This means the price cap will decrease to £3,280 per year for an average household.
It's really important to point out that even though there are these reductions in the price cap on 1 April, your bills will still be rising due to changes in government support.
How will this affect my bills?The government is making changes to the support you receive towards your energy bills from 1st April.
On 31 March the government’s £400 Energy Bills Support Scheme (EBSS) will end. This means that from 1 April you will no longer get the £66 or £67 discount off your energy bills each month.
Where can I find more Information?You can find out more about the price cap and how it is calculated on the E.ON Next blog What is the energy price cap?
Is there any other support available?There is lots of support available and we want to help you stay on top of your energy bills. If you find you are struggling please get in touch and we will do what we can to support you.
You can find out more about the support we offer on our Help with Energy Bills thread. There is also lots of other energy saving advice and helpful information on the E.ON Next blog.
E.ON Next will be writing to customers in late March or early April 2023 to let them know how the announcements impact them and if your payments are going to change. For example, over the last 6 months, low usage customers have had to make very little to no payments. Now that the EBSS has ended these customers will need to increase or start making payments again and Prepayment/SPAYG customers will now have to pay solely for their usage.
UPDATE:You can find the latest up price cap announcement (1 April 2024 - 30 June 2024) by following this link 👉 Ofgem energy price cap April 2024 - Everything you need to know!
Last edited by DebF_EONNext; 1 Week Ago at 11:20.
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