Understanding the Energy Price Cap

The energy price cap in the UK has recently increased by 10%, affecting a significant portion of households. This cap sets a maximum price that energy companies can charge on standard tariffs, but many firms charge the maximum allowed. Importantly, if individuals are unsure whether they are on the price cap, they likely are, as it generally applies to those not on fixed or specialized tariffs. The current situation highlights how the price cap does not reflect the recent drops in wholesale energy prices, leading many to pay more than necessary.