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Energy price cap

Ofgem’s energy price cap limits what you pay for gas or electricity on a variable rate plan. Find out how it works – and how it affects your prices.

Ofgem, the energy regulator, has announced that they’re lowering the energy price cap in April. We’re working through what this means for our customers and will update this page with the latest information soon..

January 2024 price changes

The way energy suppliers set prices is impacted by:

  • The price cap – set by Ofgem, the energy regulator. This limits the amount customers on variable rate plans will pay for each unit of gas and electricity and sets a maximum standing charge.
  • The Energy Price Guarantee – provided by the government to help households with energy costs during the energy crisis. It’s a discount on gas and electricity prices and is in addition to the price cap. It applies to both variable and fixed rate plans.
Ofgem have announced that the new price cap will be £1,928 for a typical household¹ from 1 January until 31 March 2024.

The Energy Price Guarantee (EPG) level will remain at £3,000 a year for customers who pay monthly. This is above the level of the price cap so won’t impact prices for anyone who pays monthly. Pay As You Go customers will still see a price increase, but will receive an EPG discount on their gas and electricity standing charges from 1 January - making their new price £1,917 a year for a typical household2.

What this means if you Pay As You Go for your energy

All Pay As You Go prices are variable – these will increase with the new price cap on 1 January. However, you’ll receive a discount on your gas and electricity standing charges through the Energy Price Guarantee (EPG). This is so that you’ll most likely pay no more than Pay Monthly customers.

This means your overall price will increase on 1 January, but you’ll receive a discount on your standing charge.

There’s still support available

We know this is a worrying time, and we’re here to support you.

OVO’s Customer Support Package still offers specialist help to customers – including financial relief and guidance.

Apply for support

If you’re worried about your energy payment, please contact us.

Priority Services Register

Need extra support? We can offer free help if you’re ill, have a disability or have a medical condition.

Register for priority services

Sources and references

1Figures are for typical domestic consumption paid by Direct Debit (11,500 kWh for gas and 2,700 kWh). This will vary based on actual household usage.

2Figures are for typical domestic consumption for customers that Pay As You Go (11,500 kWh for gas and 2,700 kWh). This will vary based on actual household usage.

Find more answers here

We’ve put together these frequently asked questions – to help you get all the latest information about what’s happening.