The Energy Price Cap

Bill Bullen

CEO - Utilita Energy

Ofgem has announced a change to the energy price cap - which means you may see changes in what you pay for your energy from 1 April 2024.

Changes to the energy price cap

Ofgem have announced a change to the energy price cap effective from 1 April. The energy price cap is reviewed every three months by Ofgem, and this sets a limit on how much you can be charged per unit of gas and electricity.

From 1 April 2024, a typical household will see their energy costs fall to £1,690 per year – but don’t forget, what you pay will always depend on how much energy you use.

We’ll be in touch to let you know exactly how this impacts your prices. You’ll hear from us regularly as things change, so you always know what’s happening with your energy costs.

Remember, if you ever find yourself struggling with your energy bills, we’ve got lots of support options and advice available!


  • Who sets and reviews the energy price cap?

    Ofgem is the independent regulator which is responsible for calculating the energy price cap - they are the sole decision maker. We then review our prices to make sure what you’re paying is in line with the price cap Ofgem sets.

  • What’s the difference between the energy price cap and Standing Charge Levelisation?

    The energy price cap is decided by energy regulator Ofgem, and it changes in line with wholesale prices – this is the energy we buy in bulk, before selling it on to you. The price cap sets a limit on the amount you pay per unit of gas and electric.

    The Standing Charge Levelisation, which will be introduced from 1 April 2024, is to ensure Pay As You Go and Direct Debit customers pay the same standing charge. This will replace The Energy Price Guarantee that's due to end on 31 March 2024. Because we don’t have a standing charge, we’ll apply any discount you need to your unit rates instead so the discount you’re entitled to happens automatically. There’s nothing you need to do.

    From 1 April 2024, the introduction of this levelisation allowance within the price cap will mean that Direct Debit customers will typically pay £10 more per year. However, Pay As You Go customers will typically pay £49 per year less (or £52 per year less including VAT).

  • Are the levelisation allowance or the energy price cap an absolute cap on energy costs?

    No. What you pay will always depend on your usage, so we do all we can to help you keep costs down. We’ve got lots of support options and advice available on our website.

  • What other Government support is available?

    The Government is working with consumer groups and industry experts to explore the best approach to consumer protection from April 2024, including options such as social tariffs.

    The Government is also providing further cost-of-living support to vulnerable households, including a £900 payment for those on means-tested benefits, £300 for pensioner households and an extra £150 for people on an eligible disability benefit. You can find out more at GOV.UK.

    We know despite Government support, you may still be struggling. If you need extra support with your energy bills, you can find lots of support on our website - as well as information on non-financial support that you might benefit from, through the Priority Services Register.

  • Do Utilita have a standing charge?

    No. There’s no standing charge with us and we don’t charge exit fees. This means if you don’t use any energy, you won’t pay anything – simple.

  • I have a legacy prepay meter - will my prices go down in April?

    Lots of customers will see a decrease in what they pay for their energy from 1 April. To activate your new tariff, you’ll need to top-up on 1 April to take advantage of the lower costs. The first top-up you make on, or after, 1 April is what makes your meter recognise the new cost – so the sooner you do this, the sooner you pay less for your energy. It’s important you do this as quickly as you can!

    You’ll need to top-up with your Utilita key/card. If you need a new card/key or you’ve not got a Utilita key/card, visit our top-up card help page.

  • I am a Pay As You Go customer - does this mean I pay more for my energy?

    No! Pay As You customers don’t have more expensive tariffs just because of the way they choose to pay for their energy. In fact, From 1 April 2024, the introduction of the levelisation allowance within the price cap will mean that Direct Debit customers will typically pay £10 more per year. However, Pay As You Go customers will typically pay £49 per year less (or £52 per year less including VAT).

What we’re doing to help

We know lots of people are still struggling to afford their energy. We continue to do all we can to help customers through the cost-of-living crisis, providing financial support worth tens of millions of pounds and doubling the size of our Extra Care team. We’d also encourage anyone struggling to afford their bill to get in touch, so we can work together to find a solution.

While we take the time to understand our customers and listen to them, we know empathy doesn’t pay the bills - and the government needs to do more. Our message has always been that there are already struggling households that need so much more help. Support should be focused on the lowest-income households, so they don’t have to face the awful choice of heating or eating.

Getting support from us

We offer a wide range of options if you require financial help, as well as general advice on lowering your spend through energy efficiency.

Our Extra Care teams

In response to the cost-of-living crisis, we have doubled the size of our Extra Care team. Several benefits are available to vulnerable customers including account credits (terms apply), eligibility checks for the Energy Company Obligation scheme and tailored energy efficiency advice.


Our best-in-class POWER UP feature on the My Utilita app allows you to apply for a top-up of up to £40 for electric and £60 for gas at the tap of a finger when you’ve run out of credit and need to get back on supply.

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Face-to-face support!

If you want to talk face-to-face, no problem! Utilita is the only energy supplier with a national network of high street Energy Hubs.

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Government support schemes

Warm Home Discount

The Warm Home Discount Scheme gives a one-off payment of £150 to help with winter energy costs for those living on a low income or pension.

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Cost-of-Living Payment

A £650 payment will be made to more than eight million low-income households who receive Universal Credit, tax credits, pension credit and other means-tested benefits.

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Utilita Community

Join the Utilita Community where you can share your knowledge, get your questions answered and talk all things Utilita with other community members… or simply log on for a chat about the previous night’s TV!

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