There have been a lot of changes in our energy bills over the last year and in particular, the last 6 months. With lots of information out there about what this means, it can be a bit overwhelming and confusing to understand.

From 1st April 2022 Ofgem (the energy regulator for Great Britain) announced a new price cap. The price cap means there is a cap on the amount a provider can charge per unit of electricity or gas. In April, this meant that energy providers could not charge more for electricity than £0.28 per kWh (a unit of electricity) and a DAILY standing charge of £0.45. The daily standing charge is the charge you pay your electricity provider to provide you with electricity. From 1st October 2022, the government have introduced what they’ve called the ‘Energy Price Guarantee’ which replaces the ‘price cap’. This means the costs per unit are increasing. The new cap is £0.34 per kWh – an increase of 6p per unit of electricity used. The standing charge is increasing by 1p and will now be 46p per day.

For those who use gas in their homes, the price cap on the 1st of April 2022 meant gas suppliers could not charge more than £0.07 per kWh and a daily standing charge of £0.27. From 1st October 2022, these rates are increasing to £0.10 per kWh and the standing charge is increasing by 1p and will now be 28p per day.

The table below shows these increases:



Price cap

1st April 2022 – 30th September 2022

Price cap

1st October


£0.28 per kWh


£0.45 daily standing charge

£0.34 per kWh


£0.46p daily standing charge


£0.07 per kWh


£0.27 daily standing charge

£0.10 per kWh


£0.28 daily standing charge


This is the maximum your electricity supplier can charge but the specific rates do change by region, payment method and meter type. You can check your rates on your energy bill.

What the price cap increase means for you as a consumer is that the price you pay for the electricity and gas used in your home is increasing. There is a lot of information in the news about the new price cap being £2,500 per year, compared to £1,971 per year with the current rates. That information is for an average home. If you use less electricity, you will pay less than the average of £2,500 per year. If you use more, you will pay more than the average £2,500 per year.

Each household will be given a £400 energy discount through their energy supplier, this will be in payments of £67 or £66 for 6 months starting in October. Each supplier will apply this differently depending on the type of meter you have and how you pay. For those who pay via direct debit, your supplier may apply this as credit in your account or reduce your DD by this amount. For those on pre-payment meters, some suppliers will credit this directly to your account or they may send vouchers. Your energy supplier should be in touch with you to let you know how they intend to do this.

There is additional support for pensioners, those living with a disability and those on a low income. More information on other support packages can be found here