How the UK energy price cap is calculated – and how it affects your bill

The energy price cap doesn’t always make energy prices affordable. Photograph: Andrew Matthews/PA

The government’s cap on energy prices, which sets the maximum amount that energy suppliers can charge customers on a default tariff, will raise energy bills for about 22m homes to almost £2,000 a year from April.

It was first introduced by the industry regulator, Ofgem, in early 2019 after the government called for a tool that could put an end to rip-off energy tariffs, and is calculated every six months to reflect the fair costs of supplying gas and electricity.