What does the new price cap mean for you?

What is happening with the price cap?

Today Ofgem, the energy regulator, has announced that there will be a price cap cut of £75.

However, while the change was announced earlier today, it actually takes effect on the 1st of October. 

The price cap affects an energy company’s standard variable tariff and the price is reviewed by Ofgem every six months. 

At the last review in April, the price cap was raised to £1254, meaning now it will go down to an average of £1179.

How many suppliers will cut prices?

Our new research shows that 41 suppliers will have to lower prices in autumn. This includes all of the Big Six.

Given that a large number upped their prices to close to the cap maximum in April, they will now be forced to lower the cap.

All of the following suppliers are more expensive than £1179, meaning their customers can expect a drop in their energy bills.

Our research has featured in the Express, the Mirror, the Mail and the Sun.

SUPPLIERS WHO MATCH THE CURRENT CAPCURRENT PRICE
British Gas£1,254
EON£1,254
ScottishPower£1,254
EDF Energy£1,254
Npower£1,254
SSE£1,254
Shell Energy£1,254
Toto Energy£1,254
Orbit Energy£1,254
Sainsbury's Energy£1,254
EBICo£1,254
Enstroga£1,254
SUPPLIERS WITHIN £10 OF THE CAPCURRENT PRICE
Spark Energy£1,253
Green Star Energy£1,253
Powershop£1,253
Co-operative Energy£1,253
Flow Energy£1,253
Go Effortless Energy£1,252
Utilita£1,252
OVO Energy£1,249
Simplicity£1,249
Utility Warehouse£1,248
LECCY£1,244
SUPPLIERS WITHIN £30 OF THE CAPCURRENT PRICE
Southend Energy£1,243
Your Energy Sussex£1,243
PFP Energy£1,242
Citizen Energy£1,241
Qwest Energy£1,240
Green Network Energy£1,234
Bristol Energy£1,234
Peterborough Energy£1,229
Robin Hood Energy£1,228
Engie£1,226
Angelic Energy£1,225
Beam Energy£1,225
SUPPLIERS £50-£200 CHEAPER THAN CAPCURRENT PRICE
RAM Energy£1,208
Great North Energy£1,204
White Rose Energy£1,204
M&S Energy£1,196
Fosse Energy£1,195
Tonik Energy£1,192

What is happening with other suppliers?

Not all suppliers price their standard tariff close to the cap, 27 suppliers price far below the current price cap.

It will be interesting to see whether these suppliers now choose to raise prices with the new price cap review.

CHEAPER THAN THE CURRENT CAPCURRENT PRICE
Solarplicity Energy Ltd£1,141
iSupplyEnergy£1,137
ESB Energy£1,136
Zebra Power£1,135
Together Energy£1,134
Gulf Gas & Power UK£1,133
Entice Energy£1,122
Nabuh Energy£1,108
Fischer Energy£1,093
The Energy Deal£1,084
Eversmart Energy£1,073
Lumo Energy£1,069
Foxglove Energy£1,069
Yorkshire Energy£1,061
Affect Energy£1,060
Avro Energy£1,057
£200+ CHEAPER THAN THE CURRENT CAPCURRENT PRICE
People's Energy£1,035
Breeze Energy£1,032
Octopus Energy£1,029
So Energy£1,026
Bulb£1,000
Pure Planet£998
Utility Point£987
Igloo Energy£966
Economy Seven Energy£948
Green£925
Outfox the Market£873

The price cap loophole

Some suppliers do not have to comply with the price cap because they offer 100% renewable tariffs.

These are Good Energy, Green Energy and Ecotricity. It’s certainly for a good cause but they do not come cheap!

GREEN SUPPLIERSTANDARD TARIFF
Good Energy£1393
Green Energy£1422
Ecotricity£1295

Is this good news?

Yes and no. There’s no doubt that a £75 bill cut will come as a relief to households.

However our research shows that the price cap should have come down much sooner.

The gap between the best and worst deals for the Big Six energy companies has in fact been widening since the price cap came in.

SupplierDifference in 2018Difference in 2019
British Gas£107£206
Eon£176£226
EDF Energy£154£243
Npower£142£154
ScottishPower£140£146
SSE£61£121
OVERALL AVERAGE£130£183

Is the price cap a good deal?

The short answer is no! While it’s good news that the price cap is coming down, it’s far from the best deal available. The cheapest deal is currently over £400 cheaper than the current price cap.

How do I pay less on my energy bills?

With autoswitching services you only need to sign up with us once and you no longer have to keep track of your energy bills – we’ll do it all for you! Every year we’ll find you a cheap deal without you having to do a thing. Sign up below.