The Energy Price Cap: your questions answered

If you’re on a fixed tariff, the price cap doesn’t affect you. Your current rates and charges will be locked in to the end of your contract.

If you’re on a variable tariff, the price cap does affect you. A price cap rise will be announced a couple of months before the rise is due to take affect. From then on, suppliers will be able to use the Price Cap as a guide for their variable tariff prices.

The price cap specifically applies to variable tariffs because these aren’t fixed against the volatility in the energy markets. Different suppliers can refer to these tariffs in a number of ways; standard variable tariff (SVT), non-fixed, etc. At Octopus our variable energy tariff is called Flexible Octopus.

If you’d like to confirm which tariff you're on, and details like your current prices and contract dates, you can see them on your online account (scroll a little way down and look at the details below your property address).

You can read more about the energy price cap on Ofgem’s website here.

The price cap only applies to 'variable' tariffs, not 'fixed' tariffs. (Every energy supplier must have a variable tariff - here at Octopus, we have our 'Flexible' tariff.)

If you sign up for a fixed tariff, we've got to procure the energy you're going to use ahead of time. If a fixed tariff is more expensive than the price cap, it's because that fixed tariff reflects the current price of wholesale energy.

It's important to note that if fixed prices remain higher than the price cap, then the price cap will likely rise next time time there is a review (every three months) to reflect those high wholesale prices too.

If you’d like to confirm which tariff you're on, and details like your current prices and contract dates, you can see them on your online account (scroll a little way down and look at the details below your property address).

If you’re on a fixed tariff, the first thing to know is that the price cap doesn’t affect your current energy contract. Your rates are locked in and won’t change until your tariff end date.

We’ll always email you well in advance of your fixed tariff coming to an end. We’ll let you know our currently available tariffs and prices, and you can either choose to fix your prices again, or do nothing and go onto Flexible Octopus; the tariff protected by Ofgem’s price cap.

For advice on what to do when your tariff ends, visit this dedicated blog.

If you’d like to confirm your current prices and contract dates, you can see them on your online account (scroll a little way down and look at the details below your property address) or on any PDF energy statement. It’s usually on the second page, near the top of the breakdown for your electricity and / or gas charges for the period.

Everyone’s situation is so different that we can’t presume to know what’s best for you.

If you’re on a fixed tariff, the first thing to know is that the price cap doesn’t affect your current energy contract. Your rates are locked in and won’t change until your tariff end date.

We’ll always email you well in advance of your fixed tariff coming to an end. We’ll let you know our currently available tariffs and prices, and you can either choose to fix again, or do nothing and go onto our flexible product; the tariff protected by Ofgem’s price cap.

If you’re wondering what’s best, we suggest reading our in-depth guide to the current situation. It covers why prices are so high, the difference between tariffs, and what to do if you’re struggling to pay.

Though green energy is cheaper to generate, on the market it's sold at the same, higher price of gas and other fossil fuels. That's down to the way the market's set up. It's similar to how houses are sold based on the price of neighbouring homes, rather than what it cost to build. Read more about the latest in the energy market.

It's mainly set up this way because the grid always has to be balanced: the UK's energy needs (or 'demand') matched perfectly with an equal amount of power supply.

The grid calls on all different types of power, from gas to renewables, to help with its crucial balancing job. It wouldn't be entirely fair to pay some energy generators less for their power when they're fulfilling the same important function. This means that the highest price ends up setting the market price. When gas prices are high, all electricity prices are too.

We’re pushing for a system in which more and more of the electrons are green ones – because the more green power in the grid, the less we need to rely on expensive, dirty gas imports to meet our energy needs at all.