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.
July 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.
Ofgem has announced that the new price cap will be £1,522 for a typical Pay As You Go household¹ from 1 July 2024. This is a decrease of £121 over the year.
Across the UK, the unit rate is going down in line with the new price cap. Although - in most cases - the electricity standing charge is going up, we’re not passing this increase on to our customers.
What this means if you Pay As You Go for your energy
All Pay As You Go prices are variable, so your unit rate will go down on 1 July in line with the price cap. The standing charge was set to increase for most customers, but Boost won’t pass this price rise on to our customers. Instead, you’ll continue to pay your current standing charge price, or less.
Useful to remember: if your home uses more energy, your costs can go up.
The price cap doesn’t put a limit on the total cost of your energy. Instead, it limits the amount you pay per unit of gas or unit of electricity – and for your daily standing charge. This means if your home uses more energy, costs can still rise.
It can be helpful to think of it like filling up a car with petrol. The price per litre stays the same, but the total cost changes, depending on how much you fill up.
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There’s still support available
We’re here to support you.
OVO’s Customer Support Package offers specialist help to customers within the OVO family (which includes Boost) – including financial relief and guidance.
If you’re worried about your energy payment, please contact us.
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Sources and references
1Figures are for typical domestic use 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.