Energy price cap

Ofgem will increase the energy price cap in January.

We’ll keep this page updated, so you know what this means for you if you’re on a variable tariff.

With prices increasing this winter, now could be a good time to choose a fixed tariff.1

Log in to fix your tariff

In this article

What is the Price Cap?

How do Ofgem decide what the price cap will be?

Energy price cap predictions

What are the current price cap rates?

What do I need to know about the price cap?

When will my prepayment meter prices change

What can I do to manage energy costs?

What is the energy price cap and how does it work?

The price cap, introduced by the government in 2019, limits the rates for customers on standard variable energy tariffs. The energy price cap is set by Ofgem every January, April, July and October. It places a maximum amount you'll pay per unit of energy you use, and the daily standing charge that covers the distribution cost of getting gas and electricity to your home.

It doesn't cap your total bill - the more energy you use, the more you'll pay.

Log in to fix your tariff

How does Ofgem decide what the price cap will be?

Ofgem sets the price cap by working out how much it costs energy suppliers to supply you with gas and electricity. These costs cover things like buying wholesale energy, maintaining supply pipes as well as wiring and operating costs.​

Energy price cap predictions2

Last updated: 2nd December 2024

We want to keep you informed, so here's a summary of our latest (2nd December 2024) energy price cap predictions. Please note, this is for guidance only and isn’t guaranteed.

If you’re looking for more information about future energy prices, Cornwall Insight is a trusted provider of forecasts for the Ofgem price cap

Energy prices will increase 1st January 2025

On 22nd November, Ofgem announced that energy unit prices and standing charges will increase from 1st January 2025. If you’re on a variable tariff, this means you’ll pay more for your energy.

What can affect our energy price cap predictions?​

The energy market has been more stable recently, but surprises can happen. Global politics play a big role in energy prices. For example, if conflicts in Ukraine, or the Middle East worsen, wholesale gas prices could go up. This would eventually mean higher bills. ​

There’s ongoing talks about how the next price cap is calculated, and other energy rules which could affect prices in 2025, changing these predictions.

We’ll keep these forecasts updated every month to help you understand if a fixed or variable tariff would be best for you.

Future energy prices predictions
Period Price cap predictions Confidence level
Q4 2024 started 1 October £1,717 Confirmed
Q1 2025 starts 1 January £1,738 Confirmed
Q2 2025 starts 1 April​ £1,810 Estimate
Q3 2025 starts 1 July​ £1,775 Low confidence
Q4 2025 starts 1 October​ £1,785 Low confidence

According to the latest predictions, the cost of energy bills is expected to stay higher for months. With a fixed tariff you’ll be protected from any future prices for the length of your contract, so you could save money over your contract's term if prices go up as predicted. ​

Log in to fix your tariff

New to British Gas?

Get a quote in minutes and join over 8 million customers powered by us

Switch to British Gas

What are the current price cap rates?

Select the payment option below and enter your postcode to find out your local Standard Variable Tariff price cap rates - the table to the right hand side will automatically update.

View price cap rates

Direct Debit - October 2024 price cap rates

Gas standing charge
31.658p
Gas unit rate
6.238p
Electricity standing charge
60.986p
Electricity unit rate
24.502p

Pay on Receipt - October 2024 price cap rates

Gas standing charge
31.658p
Gas unit rate
6.238p
Electricity standing charge
67.063p
Electricity unit rate
25.789p

Pay As You Go - October 2024 price cap rates

Gas standing charge
31.647p
Gas unit rate
6.009p
Electricity standing charge
60.976p
Electricity unit rate
23.672p

What do I need to know about the price cap?

The price cap doesn’t apply to fixed tariffs​

If you’re on a fixed tariff, the price cap won’t affect you as your prices are locked in for the length of your contract. We won’t increase the price you pay, unless the government increases VAT.

You can check what tariff you’re on in your online account.

Log in

Send us monthly meter reads for accurate bills

It’s quick and easy using our app or in your online account.

We use your meter readings so we can send an accurate bill or statement based on your energy use. If we don't receive your readings, we'll make estimates based on typical energy use, which could result in a higher bill than necessary.

Send meter readings

When will my Direct Debit change?

Your Direct Debit amount doesn’t adjust automatically when tariff prices change.

If price cap rates are going down, there may be other reasons why we may increase your Direct Debit payments, such as matching the cost of your ongoing average energy use. Also, if your account has a negative balance, we may increase your payments to get your account back to a positive balance.

Changes to Direct Debit

When will my prepayment meter prices change

Electricity key meters

If you have a meter that you top up with a key at Payzone or Post Office, to get the new prices you need to top up on or after 1st April. Your meter will have the new prices once you've put the key back in your meter.

Pay As You Go smart meters

We know that some of our smart meters won't get the new prices no matter how much we try. If we can't fix yours after three months, we'll send you a cheque for anything you've been overcharged.

Smart Energy Monitors

Some Smart Energy Monitors (SEM) won't update with the new prices, so the estimated cost of energy they show will be wrong. Your bills and Direct Debits will be accurate with the new prices. We’ll keep trying to fix your SEM so it updates correctly.

What can I do to manage energy costs?

Reduce your usage to save energy and money on bills

The price cap limits the unit rates and standing charges, not your annual energy cost.

Here are some energy-saving steps you can take right away to improve the energy efficiency of your home without spending a penny.

Energy saving tips

Lock in your energy prices

Our fixed energy tariffs can provide peace of mind that your prices won't increase this winter. Check out all our available tariffs in your online account.

Log in to change tariff

Help with your bills

If you need help paying your energy bills on time, there are a number of ways we can help you.

Help managing bills

 Save money with PeakSave

Earn money off your bills for making small changes to when you use electricity.​

Join PeakSave

It’s cheaper by Direct Debit

Change the way you pay to Direct Debit, and you’ll pay a lower unit rate and standing charge.

How to set up a Direct Debit

Upgrade to smart meters

Easily see how much energy you're using at a glance, which can help you save money.

Book my installation

Legal information

  1. Terms and conditions apply. Ofgem has announced that the price cap will increase from 1st January 2025. You could save by choosing our fixed tariffs instead of our Standard Variable tariff, which is governed by Ofgem’s price cap. Savings based on average domestic gas and electricity energy consumption values (gas: 11,500kWh, electricity: 2,700kWh). The exact savings achieved will vary depending on your energy use. Our customers taking part in PeakSave are saving £24 on average per year. PeakSave average savings per household up to 30th September 2024. If the price cap falls after April 2025, you could pay more for your energy with a fixed tariff. See our latest predictions for the price cap. Read more information on how homes could save with British Gas.

  2. Predicted prices based upon a customer paying by Direct Debit and Ofgem’s typical domestic consumption values (TDCVs) which are set at 2,700 kWh per year for electricity, and 11,500 kWh per year for gas. Our price cap predictions follow Ofgem’s price cap methodology, and we apply our forecasts of other costs to predict future price cap levels. Our prediction will change based on changes in the cost of wholesale energy for future periods.