Energy Price Cap, what it means and what it doesn’t mean

The new Prime Minister recently announced that there is going to be an
energy Price Cap which will last for the next two years.

What does this mean?

It means that the variable tariff and standing charge which providers apply to
their customers is capped. In other words there is an upper price limit above
which the providers cannot go. This figure is also significantly under the
actual wholesale cost of energy to the providers.

What effect does that have on the consumer?

This means that every customer must pay that tariff on the units they use as
well as the standing charge. Consequently the more energy you use the
more money you will have to pay. Conversely if you are a low user you will
pay less.
Remember you still have to pay for what you use, the more you use – the
more you pay.

What it doesn’t mean!!

The figure of £2,500 as quoted by the PM is what an average home will be
paying instead of the much higher figure quoted by Ofgem earlier this year.
This is NOT a price above which no one will pay.

Great deals still available to new customers
UW are still offering new multi service customers 5% discount on the price
cap as well as all the other benefits they offer.
Should anyone have any difficulty with this or need any further help, please
contact James Harris on 07971 203465 or james@jamesharris.club