Energy price cap increase arrives

April 1st, 2022


From today (Friday 1 April), the energy unit price cap has increased by 54%.

For the average household in the UK, this means an increase in annual energy costs of almost £700, to £1,971 per year.

The price cap doesn’t limit the amount you will spend, rather the amount that suppliers can charge per unit of energy used. The price cap is set by Ofgem, and you can find more information about the recent changes HERE.

The change will affect everyone on a default, standard tariff – the vast majority of households in the UK. Meanwhile, the 4.5 million customers on prepayment meters face an even bigger increase of £708 a year. Those on a fixed-rate tariff will only be affected once their deal comes to an end.


Financial support

Financial support is being made available through UK and Scottish Government:

  • A £200 discount on energy bills this autumn for domestic electricity customers. This will be paid back automatically – through bills – over the next 5 years.
  • A £150 non-repayable rebate for households in Scotland in council tax bands A to D.

Pre-existing UK and Scottish Government programmes may also be available to help, subject to eligibility:

  • Most suppliers take part in the Warm Home Discount Scheme – £140 off your electricity bill, paid between September and March. The scheme will open for applications later this year, varying by supplier.
  • Warmer Homes Scotland is a scheme that could cover the cost energy efficiency improvements to your home – including insulation and heating systems – that will help you use less energy to heat your home.
  • If you’re on a prepayment meter, you may get temporary, emergency credit. Contact your supplier directly for more information.

Call Home Energy Scotland on freephone 0808 808 2282 or complete this form to find out more about Warmer Homes Scotland and other funding. Home Energy Scotland is a Scotland-wide service (delivered in the North East by Scarf) offering free and impartial advice on saving energy.

If you’re in fuel debt, struggling to understand your bills, or need help resolving issues with your supplier, please contact our home energy advice team on freephone 0808 129 0888.


Self help

There are steps you can take to help you save energy and money right away.

  • Changes to the way you use energy can add up to big savings. Things like reducing shower times and switching off appliances on standby. You can find a whole range of energy saving tips HERE, on the Energy Saving Trust website.
  • It’s (generally) getting warmer at this time of year. You may be able to reduce the amount of time that your heating system is turned on by adjusting programmers and timers.
  • We would ordinarily recommend switching supplier for a better deal but in the current climate you are unlikely to find a better deal than standard tariffs on the price cap.
  • Unless you have a smart meter doing it for you, submit monthly meter readings. This ensures you won’t be spending more than you need to, and will prevent you from building up debt if you’re not paying enough.


When contacting your supplier or Scarf having the following documents to hand will help speed up the process:

  • Energy supplier account details.
  • A recent energy bill.
  • Proof of any benefits.
  • A means of taking notes.


Further increases to come

The price cap will change again in October with further, significant increases expected. This is likely to be announced in early August.