You have probably seen the Ofgem price cap in the news. Here is what it actually means for your bill.

What does the cap actually limit?

The cap does not limit your total bill. It limits the unit rate and standing charge a supplier can charge you. Use more energy and you pay more, even under the cap.

When does it change?

Quarterly, in January, April, July, and October. It moves based on wholesale energy prices, so it can go up or down.

Why does it matter?

If you are on a fixed tariff, your rate might already be above or below the cap. Always compare your current unit rate against the cap before deciding whether to fix or stay variable.

The bottom line

The cap is a ceiling, not a guarantee of a fair price. Shopping around and switching to a smarter tariff is still the best move for most households.