Compare energy tariffs.

The price cap limits what you pay for each unit of gas or electricity on a variable rate plan. It’s set by the energy regulator, Ofgem, every 3 months. It also sets a maximum standing charge.

Ofgem has announced that the new price cap will be £1,568 per year for a typical household¹ from 1 July 2024. This is a decrease of £122 over the year. Across the UK, the unit rate is going down in line with the new price cap. Although the electricity standing charge is going up in most cases, we’re not passing this increase on to our customers. Find out more about the energy price cap here.

Depending on your energy use and current tariff, this summer could be a good time to switch energy suppliers. The new energy price cap starting from 1 July 2024 is 7% lower than the previous 3 months.

Almost all variable deals for gas and electricity are bound by the price cap, which is set by the regulator, Ofgem. That means if you’re on a variable tariff, your energy costs should be lower from July.

If you’re on a fixed tariff, it might be cheaper to switch if you can. Either to a variable one or a different fixed deal that fixes prices over the next year, so that they’re fixed over winter when energy costs more. Find out more about switching energy suppliers here.

When thinking about switching energy tariffs there are a few things to think about. You’ll need to take into account your budget, the type of meter you have, and any specific needs you have – for example, if you need more energy at night.

There are two types of energy tariffs to choose from. One is a variable tariff where the rate goes up and down linked to the price of energy. The other is a fixed tariff, where the amount you pay per unit of energy stays the same for the length of the contract. You can find out more about the differences between them and what could be right for you here.

There are a few reasons energy prices have gone up in the past few years.

Price rises happen when demand for energy is more than the supply in the energy market. The Energy Saving Trust says that this happened when countries began to recover from the pandemic in 2021 and the demand for gas went up. Russia’s invasion of Ukraine in February 2022 then threatened supplies, and this drove up the price of gas more.

Electricity prices are linked to gas prices. About 40% of electricity comes from renewables in the UK but this is combined with gas-generated electricity to make up the total. That means the price of electricity is still tied to gas, and so is impacted by gas price rises too.