Energy Price Guarantee

The government’s Energy Price Guarantee limits what you pay per unit of gas or electricity. Find out how it works – and how it affects prices.

April price changes

We've contacted everyone affected by price changes in April.

The way energy suppliers set prices is impacted by:

  • The price cap – set by Ofgem, the energy regulator
  • The Energy Price Guarantee – provided by the government

Ofgem lowered the price cap to £3,280 from 1 April. And the support provided by the Energy Price Guarantee will now remain in place until July 2023. This will keep the cost of a typical household energy bill at £2,500.

Due to the way the price cap and guarantee were applied, some customers saw a price change in April.

How the Energy Price Guarantee works

The Energy Price Guarantee discounts the unit rate of electricity and gas from 1 October 2022 until 31 March 2024.

It means that a typical household will pay:

  • £2,500 a year for their energy until 30 June 2023
  • £3,000 a year from 1 July 2023 to 31 March 2024

Keep in mind the fact that this isn’t a cap on your bills, as that depends on how much energy you use.

The government introduced the guarantee to help with energy costs. Find out more about the government’s Help for Households.

You don’t need to contact us or apply for the guarantee:  it’s automatic, no matter what plan you're on

What OVO's doing to help

While the Energy Price Guarantee will be a great help for many people, we know it won’t be enough for everyone.

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

That's why we launched OVO’s Customer Support Package to help customers with a real and immediate need this winter.

OVO’s £50m Customer Support Package

We’ve put together specialist help for our customers – including financial relief and guidance.

Apply for support

What caused energy prices to rise

Global supply shortages, the end of lockdowns and Russia’s invasion of Ukraine caused prices to surge to unprecedented levels in 2022.

What you’re paying for your energy now is still being impacted by higher wholesale energy prices from last year.

The Energy Price Guarantee helps with this, by discounting the unit rate of gas and electricity. But your overall energy cost will still be determined by how much energy you use.

Why energy prices are going up when wholesale costs are going down

Like other energy companies, we buy our energy from the wholesale market many months in advance of supplying it to you. 

The way the price cap is calculated means that it now reflects the average of prices seen since mid-November 2022 when wholesale prices were much higher. 

If wholesale prices continue to fall, then future price caps will also fall, resulting in lower prices for customers.

Why we’re different to other energy suppliers

Unlike other suppliers, we don’t produce or generate any energy. In fact, we’re the only major energy supplier that has no energy generation assets at all. This means we’re not benefitting from the increase in energy prices.

The fossil fuel companies and electricity generators now making large profits are energy producers. They either extract energy from the ground, like oil and gas, or operate electricity generation assets like power stations or wind farms.

Priority Services Register

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

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