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Fairer energy prices are back: What you need to know about the new energy cap in the UK

The energy regulator, Ofgem, has implemented a new energy price cap that will result in fairer and more affordable energy prices.

06 July 2023Helen Tippell 2 min read
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Energy deals are on their way back to ClearScore.

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This information is referencing the July 2023 price cap.

Energy prices in the UK are set to decrease by about 17% for consumers on default energy tariffs. That number is based on an average bill and usage, so it won’t be exactly that percentage drop for everyone. But, it does mean that energy prices will become fairer and more aligned with the actual costs of energy production and supply. The price cap limits how much a consumer can be charged for their energy usage.

It does depend on where you live and how much energy you use. You might have already been contacted by your supplier, but you can always check with them.

Default energy tariffs – or variable tariffs – are typically what consumers are automatically placed on when their fixed-term energy contract ends. Many consumers end up on default tariffs without realising it, and these tariffs could be more expensive than other available options.

It’s important to note that different energy suppliers may have varying names for their default tariffs. Some common names include standard variable tariffs (SVTs), default tariffs, or basic tariffs. If you’re not sure what tariff you’re on, contact your energy supplier or check your last bill.

The cap ensures that energy prices remain within reasonable limits, so you could benefit from cheaper energy deals and avoid paying more than you should for your energy usage.

To make the most of the upcoming changes and to help make managing your energy bills easier, here are a few things you can do.

  1. Submit meter readings. Avoid estimated bills by submitting your actual usage.
  2. Top up your electric pre-pay meter (not a smart meter) after the change comes in. That way you’ll benefit from the lower rates.
  3. Check if switching is right for you. Look at your Ts&Cs, and think about the contract length and price you're paying. Look out for any early termination charges.
  4. Start comparing deals. We can help you with that. Log in, head to offers, and sign up to get notifications when energy deals are available on ClearScore.
  5. Consider fixed-term deals. They can provide price stability for a set period, shielding you from any fluctuations in the market.
  6. Keep an eye out for new deals. As the energy price cap takes effect, suppliers might introduce new deals and tariffs to attract customers. Stay informed by regularly checking for updates and promotions.

Energy deals are making their way back to ClearScore. In the meantime, log in and sign up for notifications.

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Written by Helen Tippell

Digital Copywriter

Helen's our resident Digital Copywriter. She makes personal finance easier to understand so you can be confident about your credit choices.