Energy price cap
Ofgem’s energy price cap limits what you pay for gas or electricity on a variable-rate tariff. Find out how it works – and how it affects your prices.
The price cap changed in April 2025
Ofgem have announced that the new price cap is £1,849 for a typical household¹ from 1 April till 30 June 2025. This is an increase of £111.
All about the price cap: the cap is set by Ofgem, the energy regulator. It affects the way energy suppliers can price their energy tariffs. The cap puts a limit on how much customers on variable tariffs pay for each unit of gas and electricity. It also sets a maximum standing charge – this is used to cover the cost of things like maintenance of pipes and meters.
What this means if you pay monthly
If you're on a variable-rate tariff:
Most customers on a variable tariff saw their annual costs go up on 1 April, in line with the new price cap. If your prices went up, we’ll have written to you to let you know. Remember: your actual bills still depend on how much energy your home uses.
If you're on a fixed-rate tariff:
The price cap doesn't affect prices for fixed-rate tariffs. If you're on a fixed-rate tariff, your prices won't change until your current tariff ends.
What this means if you're on Pay As You Go
All Pay As You Go prices are variable – which means most customers' annual costs went up in line with the price cap.
From 1 April, the cap for a typical Pay As You Go home² is £1,803 – that’s an increase of £113 over a year.
- If you have a smart meter your prices will have updated automatically on 1 April
- If you have a traditional meter your prices will update when you top up from 1 April
We’ll have written to let you know how this affects you if your prices are going up. Remember: your actual bills still depend on how much energy your home uses.
Useful to remember: if your home uses more energy, your costs can change
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.
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.
Ways to save
Beyond: the Energy Savings Account
Beyond rewards you for being with us by unlocking ways to save and bank rewards – free and exclusive to customers with smart meters that pay by Direct Debit, in the OVO app.
Fix your prices and get a free annual boiler service on us³
You might save by moving to one of our fixed-rate tariffs - and you can add on a free annual boiler service.³ Just head to your OVO app or online account to compare our tariffs and fix your prices.
Save money by using off-peak energy
So far, customers have saved over £2 million and cut 500 tonnes of carbon, by using energy at greener times of the day. Unlock Beyond and sign up to Power Move. Terms and eligibility criteria apply.
Get a smart meter installed for free
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.
Prices are lower with a Direct Debit
On average, customers save £1204 a year by choosing Direct Debit. You can set one up on your OVO app or 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.
Send a reading before the price cap changes
Make sure your bills are correct: send your meter reading by 31 March in your OVO app or online account.
If you need financial support, we’re here to help
Our OVO Extra Support includes financial help and guidance.
If you’re worried about your energy bills, please contact our team – we can help.
Priority Services Register
We can offer free practical support and extra services if you need it – if you’re unwell, you have a disability, or a medical condition.
Questions and answers
The price cap is set by Ofgem, the energy regulator. It affects the way energy suppliers can price their variable energy tariffs. The cap puts a limit on how much customers pay for each unit of gas and electricity. It also sets a maximum standing charge – this is used to cover the cost of things like maintenance of pipes and meters.
It’s based on the price of wholesale energy. The cap gets reviewed 4 times a year, with price changes taking place 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.
It’s based on various costs that energy suppliers face, with wholesale energy being the biggest element. Since wholesale prices change frequently, the price cap gets updated every three months. Other costs include things like maintenance of pipes and meters, and meeting environmental and social policy obligations.
Yes, we are. You can get a free annual boiler service if you choose a fixed-rate tariff3, and 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’ve recently moved to a fixed tariff, you might have been sent a letter or email about the prices of your previous variable-rate tariff changing. You can ignore this letter/email and the price of your fixed-rate tariff will remain the same until it comes to an end.
No, it doesn't. If you're on a fixed-rate tariff, there'll be no change to the price you're paying until your current tariff comes to an end.
If you'd like to switch to a variable-rate tariff, just give us a call. You might need to pay exit fees if you choose to end your tariff early.
Check out our guidance on energy efficiency. It has some basic tips to help you save energy and money, and information on financial support too.
Here are trusted organisations you can contact for more energy saving advice and tips:
Yes, it’s available for people who need it – our team is here for you. We’re offering customers extra financial and practical support through our OVO Extra Support. You can find out more and apply online. We’ve helped thousands of people in similar situations and we can help you too.
If you’re worried about not being able to top up or pay your energy bill, please get in touch with us as soon as possible – we’re here to help.
Our teams can talk you through the financial support that’s on offer and give advice on what might work best 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’ll be to talk you through what’s available.
Let us know if:
- Your financial situation has changed
- You’re elderly, have a disability, or have a long-term illness
We’re here to work with you and we can make a plan tailored to your situation. We’ll also talk to you about other organisations that can help.
Direct Debit questions
Yes, it could change – but it depends on a few things. Your Direct Debit will be based on your new prices, as well as the energy your home’s used over the past year. If the Direct Debit looks too high or too low, we'll let you know – and it might be changed automatically. This is to make sure your account doesn’t build up an unexpected balance by 31 March 2026. We always want to avoid that happening to you.
- We look at how much energy your home’s used to date, and how much you’re likely to use until 31 March 2026
- Your current balance is taken into account, as well as other costs like the standing charge and any add-ons you have
- The total amount is divided by the number of payments left until 31 March 2026 – and that gives us your monthly amount
Your Direct Debit is checked regularly, to make sure you’re paying the right amount.
This could be down to a few reasons. Sometimes, even if your balance is in credit, your monthly payments still need to go up.
Usually, this happens if it looks like your balance is going to drop below £0 by 31 March 2026. This is to help avoid you having a large balance to pay after the winter months. We never want people to be in that situation. So we work out if that’s likely by predicting how much energy your home will use, then checking if your payments will cover it.
It’s also useful for your balance to be in credit. 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 is usually much higher.
Your Direct Debit is checked regularly, to make sure you’re paying the right amount.
Yes, if you're on a variable-rate tariff then you’ll pay less if you pay by Direct Debit. This is compared to paying after you get your bill.
We estimate our average customer will save £1204 a year by choosing Direct Debit.
Paying a monthly Direct Debit means you never have to remember to pay your bill. It also helps with budgeting, by splitting the cost of your energy bills into equal payments throughout the year. Then you’re paying the same amount – whether it’s winter or summer.
Take a look at our “How do Direct Debits work?” page for more info.
Help and support
If you’re worried about not being able to top up or pay your energy bill, please get in touch with us as soon as possible – we’re here to help.
Our teams can talk you through the financial support that’s on offer and give advice on what might work best 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’ll be to talk you through what’s available.
Let us know if:
- Your financial situation has changed
- You’re elderly, have a disability, or have a long-term illness
We’re here to work with you and we can make a plan tailored to your situation. We’ll also talk to you about other organisations that can help.
Customers who need it could get extra financial and practical support through our OVO Extra Support. You can find out more and apply online. We’ve helped thousands of people in similar situations and we can help you too.
We work with a number of charities and organisations that offer free support.
- Citizens Advice England and Wales
Adviceline (England and Wales): 0808 223 1133 - Citizens Advice Scotland
Adviceline (Scotland): 0808 196 8660 - 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 how much energy customers paying by Direct Debit typically use (11,500 kWh for gas and 2,700 kWh for electricity). This will vary based on actual household use.
2 Figures are for how much energy customers on Pay As You Go typically use (11,500 kWh for gas and 2,700 kWh for electricity). This will vary based on actual household use.
3 Terms and eligibility criteria apply - you must be a dual fuel homeowner and pay by Direct Debit. Not available for existing CORGI HomePlan and OVO Energy boiler cover customers. This plan automatically renews at the end of 12 months unless cancelled. This offer can be selected when choosing a fixed-rate tariff via your online account or our app and can only be redeemed once per household. We reserve the right to amend or withdraw this offer at any time.
4 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.