Energy Cap and Your Fuel Bills
The energy price cap is often talked about as a particular price, based on a 'typical' user. Quotes for gas and electricity deals are often similarly based on this. But what does it actually mean for you?
The energy price cap is actually a cap on the unit rates you pay for each unit of energy you use, not the total amount. It only applies to energy customers who have not fixed into a specific tariff, and are instead on a rolling, variable contract.
No matter what tariff you're 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 educated 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 don't know your household's energy usage – perhaps because you 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 on the Citizens Advice website.
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