Energy news: the price cap, standing charges and cutting your bill

Most households in Great Britain pay for gas and electricity on a standard variable tariff, whose price is limited by the Ofgem energy price cap. Understanding how the cap works helps you decide whether to stay put or fix. The price cap limits rates, not your total bill Ofgem sets the cap every three months. It limits the unit rate you pay for each kilowatt hour and the daily standing charge, not the total amount you pay. If you use more energy, you pay more. Ofgem publishes a typical annual figure for illustration, but your own bill depends on your usage, your region and how you pay. Standing charges are paid whatever you use The standing charge is a fixed daily amount that covers the cost of supplying your home. You pay it even in months when you use very little, so it matters most to low-usage households. Compare standing charges as well as unit rates when you look at tariffs. Fixed or variable? A fixed tariff locks your unit rates and standing charges for a set period, often 12 months. It can protect you if the cap rises, but you may pay more if the cap falls, and there may be exit fees. Compare a fix against the current cap rates and Ofgem's announced direction of travel before committing. Help with bills The government's Warm Home Discount scheme provides a one-off discount on electricity bills for eligible households, usually applied automatically if you qualify. If you are struggling to pay, contact your supplier early: suppliers must work with you on an affordable payment plan, and you can ask about priority services if you are vulnerable. Before winter, check: 1. Your tariff name, unit rates and standing charges on your latest bill. 2. Whether you are on a fixed deal that is about to end. 3. That you submit meter readings, or that your smart meter is sending them, so bills are accurate. 4. Whether paying by direct debit would be cheaper for you. 5. Your eligibility for the Warm Home Discount and other support.