Energy price cap

Ofgem’s energy price cap limits what you pay for gas or electricity on a variable rate plan. Find out how it works – and how it affects your prices.

Changes to the energy price cap in April

Ofgem, the energy regulator, has announced that they’re lowering the energy price cap in April. We’re working through what this means for our customers and will update this page with the latest information soon.

January 2024 price changes

The way energy suppliers set prices is impacted by:

  • The price cap – set by Ofgem, the energy regulator. This limits the amount customers on variable rate plans will pay for each unit of gas and electricity and sets a maximum standing charge.

  • The Energy Price Guarantee – provided by the government to help households with energy costs during the energy crisis. It’s a discount on gas and electricity prices and is in addition to the price cap. It applies to both variable and fixed rate plans.

Ofgem have announced that the new price cap will be £1,928 for a typical household¹ from 1 January until 31 March 2024.

The Energy Price Guarantee (EPG) level will remain at £3,000 a year for customers who pay monthly. This is above the level of the price cap so won’t impact prices for anyone who pays monthly. Pay As You Go customers will receive an EPG discount on their gas and electricity standing charges from 1 October - making their new price £1,816.90 a year for a typical household².

What this means if you pay monthly for your energy

If you're on a variable rate plan

If you're on a variable-rate plan, your unit rate and standing charge will increase on 1 January, in line with the new price cap. We’ll write to you to let you know if this impacts you personally. Your actual bills will still depend on how much energy your home uses.

As the Energy Price Guarantee (EPG) level is higher than the new price cap, it won't have an impact on what you pay if you're on a variable-rate plan.

If you're on a fixed rate plan

The price cap doesn't affect prices for fixed-rate plans. Even though the EPG level went up to £3,000 from 1 July 2023, if you're on a fixed-rate plan your prices won't change. That's because we're keeping your prices as they are for the length of your contract to protect you from any price increases.

What this means if you Pay As You Go for your energy

All Pay As You Go prices are variable – these will increase with the new price cap on 1 January. However, you’ll receive a discount on your gas and electricity standing charges through the Energy Price Guarantee (EPG). This is so that you’ll most likely pay no more than Pay Monthly customers.

This means your overall price will still increase on 1 January, but you’ll receive a discount on your standing charge.

Now's the time to send a meter reading

This will make sure your energy account is up to date. You can submit a meter reading now on your online account or through our app.

If you’ve got a smart meter, you don’t need to send a reading. The smart meter will send this for you.

There’s still support available

We know this is a worrying time, and we’re here to support you.

OVO’s Customer Support Package still offers specialist help to customers – including financial relief and guidance.

If you're worried about your energy bills, please contact us.

Priority Services Register

Need extra support? We can offer free help if you’re ill, have a disability or have a medical condition.

Questions and answers

Direct Debit questions

Help and support

Sources and references

1 Figures are for typical domestic consumption paid by Direct Debit as of 1 October 2023 (11,500 kWh for gas and 2,700 kWh). This will vary based on actual household usage.

2 Figures are for typical domestic consumption for customers that Pay As You Go as of 1 October 2023 (11,500 kWh for gas and 2,700 kWh). This will vary based on actual household usage.

3 This saving is based on a typical domestic dual fuel customer who uses on average 11,500 kWh for gas and 2,700 kWh for single-rate electricity, and will vary based on actual household use.