Energy Cap and Your Fuel Bills
The energy price cap is often talked about as a single price, based on a "typical" user. But it actually caps the unit rates you pay, not your total bill. Understanding what this means can help you make better decisions about your energy costs.
Understanding the energy price cap
If you are worried about your energy bills, you are not alone. Energy costs have been a major concern for many young people, especially those managing a household budget for the first time. Understanding how the energy price cap works can help you make sense of what you are being charged.
What the energy price cap actually is
The energy price cap is a cap on the unit rates you pay for each unit of energy you use. It is not a cap on the total amount of your bill. It only applies to energy customers who have not fixed into a specific tariff and are instead on a rolling, variable contract.
Why your usage matters
No matter what tariff you are on, if you know your unit rates and how much gas and electricity you use in a year, you can get a much clearer idea of how much your energy bills will be.
If you are weighing up two different potential energy tariffs, you can make a more informed choice if you know how much of your bill is typically made up of standing charges and unit rates, as providers will charge different amounts for each.
If you do not know your usage
If you do not know your household's energy usage, perhaps because you have only recently moved in, you can get a feel for how much your bills might be by thinking about where you fit into the national averages.
You can find out more about energy costs and your rights on the Citizens Advice website.
Get help
If you are struggling with energy bills or energy debt, we can help. Energy debts to your current supplier are treated as a priority debt, so it is important to deal with them.
- Email us at info@youthlegal.org.uk
- Call us on 020 3195 1906
- Fill in our [contact form](/contact-us) and we will get back to you
All our advice is free and confidential.