Demand exceeding available supply has made energy more costly to purchase. As a result, energy companies have faced higher costs and have passed these on to customers in the form of higher energy bills.
About the price cap
Prices increased dramatically in April after energy regulator Ofgem lifted the energy price cap. The energy price cap limits how much energy suppliers are allowed to charge their customers, and this rose by 54 percent in April. The price cap rose again on 1st October. The government has now committed to freezing the price at this level until 2024.
Our bills are NOT capped at £2,500
It’s common to read that the price of energy is capped at around £2,500. This might confuse some people into thinking that your bill cannot be higher than this when in fact it is a figure based on average use. An easier way to understand how much your costs will rise is to look at the cost per unit of energy along with your daily standing charge and compare what you paid before October with what you will pay going forward.
And remember, the price rise that was applied in April 22 won’t have been fully felt during the warmer months. So, whilst the most recent increases may look small when applied to individual units, it quickly adds up.
See tables below for price caps in Southern Scotland: