Changes coming on 1 October.
- Ofgem sets the October price cap. It will decrease from the current £2,074 to £1,923 for the average household.
- The price cap will still be lower than the government’s Energy Price Guarantee (EPG).
Price cap
Ofgem’s price cap is changing on 1 October. Overall, the price cap is decreasing from £2,074 to £1,923 per year for an average household.
From 1 October the price per kilowatt hour (KWh) for customers on the default tariff will be 27.35p per KWh for electricity and 6.89p per KWh for gas. The daily standing charge will increase to 53.37p for electricity and 29.62p for gas.
This new level from 1 October 2023 will bring the price cap further below the government’s Energy Price Guarantee meaning the price cap will continue to determine how much energy companies can charge.
The specific unit rates each customer sees will vary by region, how you pay your bill and type of meter installed. This is to reflect the different costs to suppliers of providing energy to homes and servicing the different payment methods. The regional variations for electricity, and payment type variations, have been adjusted by Ofgem in the most recent price cap calculations (25 August 2023).
EBSS
The government’s EBSS was the £400 energy bill discount that you received in monthly instalments from October 2022 to March 2023. On 31 March the EBSS came to an end, so from 1 April you no longer get £66 or £67 a month towards your energy bills.
EPG
The government’s Energy Price Guarantee (EPG) is a discount that aims to keep the average household bill below £2,500 (October 2022 to June 2023). Since 1 July the price cap has been below the EPG threshold (£3,000 July 2023 to March 2024) meaning that the price cap determines customer’s energy bills.
Learn more about the EPG and EBSS.
We are here to help you in any way we can through these 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. 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 £2,074. It was set from 1 July 2023, and is being reviewed by the energy regulator.
On 25 August 2023, Ofgem announced that the price cap for customers on a standard variable tariff would decrease to £1,923 from 1 October 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.