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.

October 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. 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 £1,923 for a typical household¹ from 1 October until 31 December 2023.

Although the cost of standing charge has gone up for Pay Monthly customers, we’re not passing this increase onto any of our customers. The cost of living crisis is impacting so many people, so it’s important to us that we protect our customers from price increases where we can.

The Energy Price Guarantee (EPG) level will remain at £3,000 for pay monthly customers. Pay As You Go customers will receive an additional EPG discount on their gas and electricity standing charges from 1 October – making their new price £1,908 per year for a typical household.²

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 we’re not passing on any standing charge increases. With the new price cap, you’ll pay a lower unit rate for your energy from 1 October. Daily standing charges should be increasing, due to rising costs of supplying energy to your home. Due to the challenges that a lot of customers face with the cost of living crisis, this increase won’t be passed on to you, and you’ll continue paying your current price for standing charge. 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, but it will remain in place to protect you from future price increases.

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 be set by the new price cap on 1 October 2023. As of 1 October 2023, you’ll receive an additional 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 prices will decrease on 1 October.

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

Although prices are starting to come down, we know it won’t be enough for everyone. We understand 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.

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, and will vary based on actual household usage.

2 Figures are for typical domestic consumption for customers that Pay As You Go, and will vary based on actual household usage.