The energy price cap is currently £1,971 per year on typical use for England, Scotland, and Wales. This is due to rise around 70% in October, the details of which will be announced at the end of August.
The energy price cap does not put a limit on a household’s bill - which will depend on their usage. Instead it places a limit on how much a supplier can charge for each unit of energy, based on the rates they’re being charged by the energy producers.
This stops consumers from being overcharged for profit, with the law limiting the profit energy suppliers can make to 1.9%. However, the prices suppliers are being charged by the energy producers have skyrocketed with some producers announcing record profits.
