Changes coming on 1 April.
From 1 April, you will pay more for your energy.
There will be three major changes happening in the energy market from 1 April:
- Ofgem sets the April price cap.
- The government’s Energy Bills Support Scheme (EBSS) is ending.
- The government’s Energy Price Guarantee (EPG) is remaining at £2,500 for an average household until the end of June.
Price cap
Ofgem’s price cap is changing on 1 April. Standing charges will slightly increase but unit rates will decrease. Overall, the price cap is decreasing from £4,279 to £3,280. However, the reduction in the Energy Price Guarantee discount and end of the Energy Bills Support Scheme means that in total, you’ll pay more for your energy.
EBSS
The government’s EBSS is the £400 energy bill discount that you are currently receiving in monthly instalments. On 31 March the EBSS will come to an end, so from 1 April you’ll no longer get £66 or £67 a month towards your energy bills.
EPG
The government’s Energy Price Guarantee (EPG) is a discount that currently aims to keep the average household bill below £2,500. From 1 April the EPG was due to increase from £2,500 to £3,000 a year for an average household but the government has decided to continue the support and hold the EPG at £2,500 until the end of June. The EPG threshold will still be lower than the new price cap – and so it will still be saving you money. However, some customers will notice an increase in your energy bills as the government’s Energy Bills Support Scheme (£400) payments end.
Learn more about the EPG and EBSS.
We are here to help you in any way we can through these upcoming changes. If you need support or are struggling to pay your energy bills we have a range of help and advice available to you.
Struggling to pay
If you’re having trouble paying your energy bills, we’re here to help. With access to expert advice and financial assistance, we can help you get the right support. Find out more about the assistance on offer for Sainsbury’s Energy customers.
What is the price cap?
The price cap was introduced by the government back in 2019 to protect energy customers from paying more than necessary for their energy. It caps the price you pay per unit for your energy, as well as the standing charge, whilst on a standard variable tariff.
Since October 2022, electricity and gas prices are reviewed by the energy regulator Ofgem every three months - January, April, July and October. It is calculated and set by Ofgem to reflect changes in industry costs.
The price cap level is set for customers in England, Wales and Scotland. Retail energy prices in Northern Ireland are not subject to a cap.
The current price cap.
Ofgem’s current price cap is £4,279. It was set from 1 January 2023, and is being reviewed by the energy regulator.
On 27 February 2023, Ofgem announced that the price cap for customers on a standard variable tariff would decrease to £3,280 from 1 April 2023.
Am I affected by the price cap?
The price cap affects customers on a standard variable tariff. The price cap does not apply to you until the end of your contract if you’re on a fixed energy tariff. Find out which tariff you’re on by logging in to your account.
If you're on our standard variable tariff, we'll be writing to you in the coming weeks to explain how these changes affect you. If you're on our Fix & Reward Tariffs, your prices will stay the same until your tariff term ends. We'll contact you when your fixed tariff term is about to end with guidance for what to do next.