What is the Price Cap?
The price cap, set quarterly by Ofgem - the regulator for electricity and gas markets in Great Britain - ensures that prices for standard variable tariffs are fair and reflect the cost of energy. It sets a maximum for the rate per unit of energy and daily standing charge. However, it doesn’t limit your total bill, which depends on how much energy you actually use.
The Energy Price Cap for standing charge and unit rate from January 1st to 31st of March will be:
Standing charge:60.97 pence per Day
Unit rate:24.50 pence per kWh
It's important to note that these rates are the average for those living in the UK and who pay their electricity bill by direct debit. The price cap for your region and how you pay your bill can be found on Ofgem's website.
Frequently Asked Questions:
Will Fuse' Standard Variable Tariff Rates Increase?Although the Price Cap has increased, our Standard Variable Rates will not be increasing in January. We will be keeping our variable tariffs at the same rates they are currently.
How is the price cap calculated?The Price Cap is based on the costs incurred by your supplier in order to provide energy to your home. These include but are not limited to Wholesale, Network, Operating and Policy costs.
Why is the price cap higher in certain areas?The Price Cap reflects the costs your supplier incurs to provide energy to your home. In some regions, higher network costs make supplying electricity more expensive, leading to a higher cap.
How does the price cap affect my tariff?The price cap applies only to customers on Variable Tariffs, so if you are on a variable tariff your rates might be subject to change on January 1st if you are with another supplier.
How can I stop my rates from possibly increasing?If you want to protect yourself from increasing rates due to the price cap change, you can choose to go onto a Fixed Tariff. On a Fixed Tariff you will pay the same unit rate and standing charge for a Fixed Term.
