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“£2,500” vitality value cap warning

There’s loads of confusion over the vitality value cap and value assure, with many individuals not realising how a lot their vitality invoice will actually be.

smart meter display

From 1 October, a cap has been positioned on vitality prices referred to as the vitality value assure.

The federal government is subsidising vitality payments and limiting the unit charges that may be charged.

A determine of £2,500 has been given as a mean quantity a family can anticipate to pay.

Hassle is, individuals have heard this determine and imagine that’s the most they’ll pay – that that’s not the case.

You may pay greater than £2,500 for vitality

New analysis from has discovered that 40% of households wrongly imagine their invoice can not exceed £2,500.

The £2,500 determine is an illustration of what an “common” family may pay in the event that they use a “typical” quantity of vitality over a 12 months.

A typical medium family has been calculated as utilizing Typical Home Consumption Values from Ofgem:

12,000 kWh of fuel

2,900 kWh of electrical

= £2,500 a 12 months in vitality payments

The £2,500 talked about is due to this fact not a hard and fast higher restrict or the utmost you’ll pay.

When you use extra vitality, you’ll pay MORE than £2,500 and can see even larger payments.

Vitality value cap from 1 October

From 1 October, there’s a new value cap.

That is larger than we’re at present paying for the standard tariff however decrease than was initially given.

When you get your final annual assertion and have a look at how a lot electrical energy and fuel you used, you’ll be able to work out what your precise prices shall be going ahead.

It can clearly be larger than final 12 months, and the one method to get prices down is to cut back the quantity of vitality you utilize.

  Worth cap on unit charges from 1 October 2022
Electrical energy £0.34 per kWh

Every day standing cost: £0.4636

Fuel £0.103 per kWh

Every day standing cost: £0.2849

Supply: Ofgem Twitter
Charges are averages and can fluctuate by area, fee methodology and meter sort.
Contact your provider for personalised data.

Suppliers should not allowed to cost you greater than the cap. Suppliers are additionally monitored to make sure they comply.

How the £2,500 “value cap” was labored out

Utilizing the standard utilization figures for a medium family (3-bedroom home / 2-3 individuals) and the 1 October value cap charges, you’ll be able to see how the £2,500 was calculated:


£0.34 x 2900 = £986 unit charge annual spend

£0.4636 x 365 = £169.214 annual standing cost

£1,155.214 complete electrical spend


£0.103 x 12000 = £1236 unit charge annual spend

£0.2849 x 365 = £103.9885 annual standing cost

£1,339.9885 complete fuel spend

Whole vitality spend, primarily based on “typical” figures = £2,495.20

person looking at energy bill

Ben Gallizzi, vitality professional at, mentioned: “The Authorities’s measures will help loads of households by means of the winter, however there may be nonetheless loads of confusion about what has been introduced. 

“It is very important keep in mind that the value assure of £2,500 is just a mean invoice — so you’ll pay extra should you use extra vitality. 

“It’s doable the announcement has created a false sense of safety for some, particularly for bigger households who might pay considerably extra this winter. 

“It’s actually vital that households monitor their vitality and reduce their utilization the place doable – in addition to regulate all family spending. 

“In the meanwhile you won’t be capable of save on the subject of your vitality, nevertheless it’s nonetheless doable to chop prices throughout your different family payments. 

“Reviewing your broadband, TV and cellular contracts, particularly if you’re out of contract, might be a fast and easy method to cut back your month-to-month outgoings. For instance, broadband customers whose deal has expired can save £162 a 12 months by switching to a brand new package deal.”

Naomi Willis
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