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.
July 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.
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 - in most cases - the electricity standing charge is going up, we’re not passing this increase on to our customers.
What this means if you pay monthly for your energy
If you're on a variable rate plan
With the new price cap, you’ll pay a lower unit rate for your energy from 1 July. The daily standing charge was set to increase for most homes, but to protect our customers from higher costs, OVO won’t pass this price rise on. You’ll continue paying your current standing charge price, or less. Your actual bills will still depend on how much energy your home uses.
If you're on a fixed-rate plan
The price cap doesn't affect prices for fixed-rate plans. If you're on a fixed-rate plan your prices won't change until your current plan ends.
What this means if you Pay As You Go for your energy
From 1 July, the price cap for a typical Pay As You Go home² will be £1,522 - that’s a decrease of £121 over a year.
All Pay As You Go prices are variable, so your unit rate will go down on 1 July in line with the price cap. The standing charge was set to increase for most customers, but OVO won’t pass this price rise on. Instead, you’ll continue to pay your current standing charge price, or less.
Useful to remember: if your home uses more energy, your costs can go up
The price cap doesn’t put a limit on the total cost of your energy. Instead, it limits the amount you pay per unit of gas or unit of electricity – and for your daily standing charge. This means if your home uses more energy, costs can still rise.
It can be helpful to think of it like filling up a car with petrol. The price per litre stays the same, but the total cost changes, depending on how much you fill up.
More ways to save
Beyond: the Energy Savings Account
Unlock ways to save today and bank rewards exclusively for customers on the OVO app.
You might save by moving to a fixed plan
Protect yourself from future price increases with a fixed-rate plan. Check your online account for our latest prices.
Get a free smart meter
See your home’s energy use in real time and spot ways to save with a smart meter online. You’ll also unlock money-saving offers and rewards like Power Move.
Save money by using off-peak energy
Join our Power Move challenges. So far, customers have saved 160 tonnes of carbon, and cut £1.5 million off their bills.
Prices are lower with a Direct Debit
On average, customers save £100³ a year by choosing Direct Debit. You can set one up in your online account. We'll review your Direct Debit regularly to make sure it covers your energy costs and that you're paying the right amount.
Get accurate bills by sending a meter reading before 30 June
You can send a reading in your energy account or on our app.
There’s still support available
We’re here to support you.
Our Customer Support Package 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
The price cap limits the amount customers will pay for each unit of gas and electricity and sets a maximum standing charge. The cap is set by Ofgem (the energy regulator) and determined by the price of wholesale energy. It’s reviewed 4 times a year, with changes coming into effect in January, April, July and October.
This is a cost that’s paid by everyone who has an energy account in the UK – whether their home is using any energy or not. It’s used to pay for things like the maintenance of pipes, power lines, and meters.
Due to rising costs of supplying energy to customers’ homes, the price cap for the standing charge has increased for most homes. However, we’re not passing this price increase on to our customers. You’ll continue to pay your current standing charge price, or less.
Yes. If you choose a fixed rate plan your rates will stay the same until the end of your contract.
For our latest prices and to see if you could save, check your online account.
If you're on a fixed rate plan, there'll be no change to the price you're paying right now.
If you'd like to switch to a variable rate plan, just give us a call. Just so you know – you might need to pay exit fees if you choose to end your plan early.
Check out our guide for tips to help you save energy and money.
Our priority right now is making sure you have as much support as possible through this challenging period.
That’s why we’re not passing standing charge price increases on to our customers.
We’re also offering customers extra financial and practical support with our Customer Support Package. You can find out more and apply online.
If you’re concerned about topping up or paying your energy bill, contact us as soon as possible.
We’ll be happy to talk you through your options, and find a solution that works for you.
We’ve supported lots of people in similar situations – and we can support you too. The sooner you speak to us, the easier it will be to talk you through what support and advice is available.
Let us know if:
- Your financial circumstances have changed
- You’re elderly, have a disability or long-term illness
We’re here to work with you to make a suitable plan, and talk to you about organisations that can also help.
If you’re worried about your energy bills, please contact us.
Direct Debit questions
We work out your Direct Debit based on your new prices and energy used over the year. If we think the Direct Debit is too high, or too low, then we'll let you know.
To work out your monthly Direct Debit amount, we:
- look at your energy use to date and how much you’re likely to use until 31 March (or the end of your contract if you’re on a fixed plan)
- take into account your current balance and any other costs such as the standing charge and any add-ons you have
- divide the amount by the number of payments left until 31 March, or the end of your contract – and that gives us your monthly amount
Our aim is to make sure you don’t build up unexpected debt by the end of winter. Or the end of your contract if you're on a fixed plan.
It’s useful for your balance to be in a bit of credit. That’s because it can act like a pot of money to cover those times when your energy use might be higher.
For example, you’re likely to build up credit in the summer months when energy use is lower. But you might need to use this credit in the winter months when it’s colder and darker – and your energy use could be much higher.
We regularly check you’re paying the right monthly amount so your balance stays on track for the whole year.
Sometimes, even if your balance is in credit, we might still need to increase your monthly payments. This would be if your balance is likely to go below zero by the 31 March or end of your fixed plan. We work this out by calculating your predicted energy use, and seeing if your payments will cover it.
Yes, if you're on a variable rate plan then you’ll pay less if you pay by Direct Debit.
We estimate our average customer will save £100³ a year by choosing Direct Debit.
Paying a monthly Direct Debit amount also means you don’t have to spend time paying your bills every month. And it helps to split the cost of your energy bills into equal payments throughout the year.
Help and support
If you’re concerned about topping up or paying your energy bill, contact us as soon as possible.
We’ll be happy to talk you through your options, and find a solution that works for you.
We’ve supported lots of people in similar situations – and we can support you too. The sooner you speak to us the easier it will be to talk you through what support and advice is available.
Let us know if:
- Your financial circumstances have changed
- You’re elderly, have a disability or long-term illness
We’re here to work with you to make a suitable plan, and talk to you about organisations that can also help.
If you’re worried about your energy bills, please contact us.
We work with a number of charities and organisations that offer free support.
Citizens Advice
- Citizens Advice England and Wales
- Citizens Advice Scotland
- Adviceline (England and Wales): 0808 223 1133
- Adviceline (Scotland): 0808 196 8660
National Debtline
- National Debtline
- Helpline: 0808 808 4000
StepChange Debt Charity
- StepChange
- Debt helpline: 0800 138 1111
Civil Legal Advice
- Check if you can get legal aid
- Telephone: 0345 345 4 345
Here are trusted organisations you can contact for more energy-saving advice and tips:
Sources and references
1 Figures are for typical domestic use paid by Direct Debit (11,500 kWh for gas and 2,700 kWh). This will vary based on actual household usage.
2 Figures are for typical domestic use for customers that Pay As You Go (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.