What are the Energy Price Caps? Is this new regulation coming soon for British Gas customers? The answer is no. Energy tariffs have been frozen for three years and prices have not increased since then. While there are concerns over the stability of the economy, the cost of living inflation has also been kept under control so that rising bills are not an issue. Therefore, it is unlikely that any of the new measures being considered will have any significant impact on prices.
What is the current energy price cap level?
Our energy price caps still in force? No. Your current tariffs will only be capped if you either have a prepayment device installed, get a Warm Home discount; or are on either a standard variable rate or fixed-rate tariff. If you are currently on a variable rate, your rates will not be capped but your annual usage will be restricted for the remainder of this year.
Our energy price caps still on the cards for new customers? No, they are not on the cards at all. Any energy supplier who wants to give a customer a discount on their gas or electricity will not be able to do so if they introduce new tariffs to the market. Any attempts to introduce new tariffs would be rejected by the competition. Any attempts to introduce caps are likely to face fierce resistance both from the suppliers and the consumers.
Is there a cap for prepayment meters?
Why are energy price caps affecting me? If you currently use gas and electricity and are on an energy pay tariff then you will be affected by the introduction of these caps. Basically, the caps mean that you will either pay more or less for your daily usage. It could be beneficial for some people but may harm others in ways that are not immediately apparent. This is because while you might see a reduction on some utility bills this month your neighbor who uses much more electricity and gas could continue to spend more than you have been.
Will I benefit from energy price caps? Yes, but in a negative way. The caps mean that prices will be capped for a certain period of time which means that during that period you will pay more or less than someone who does not have the same caps. This is exactly why the average consumer is feeling the pinch, they are not getting as good value for money as they were before and will probably be looking for ways of reducing their costs.
Will my supplier raise my tariff following the 31 March Energy Price Cap? No, they cannot increase your tariffs. If you inform your provider before your tariff is due for renewal you will avoid any extra costs that you may have to pay as a result. In fact, it may even be possible that your supplier will reduce your tariff when they learn that you have chosen to switch to a better energy regulator like EPCS.