The energy price cap is a cap (ie a maximum price limit) on the price energy suppliers can charge you per unit of energy (eg electricity or gas) that you have used. How much you pay will depend on how much energy you use.
The energy price cap is calculated by Ofgem, which regulates energy suppliers in the UK. The energy cap is a governmental protection, which ensures that energy suppliers’ profits are capped at a certain amount.
In October 2022 the Government introduced the Energy Price Guarantee (EPG), to provide relief from rising energy prices. Under the EPG the maximum amount an average household in the UK will pay for energy is limited. Between 1 April and 30 June 2023, the price cap is an average of £3,000 per year. Between 1 July and 30 September 2023, the price cap will be reduced to an average of £2,074.
For more information, see Ofgem’s guidance.