When is the Ofgem energy price cap announced? And what it could mean for bills
We reveal when the next Ofgem energy price cap will be announced, and what it means for your bills


Get the best money-saving tips, tricks and deals sent straight to your inbox every week. Make sense of your money in partnership with The Money Edit.
Thank you for signing up to The Money Edit. You will receive a verification email shortly.
There was a problem. Please refresh the page and try again.
Ofgem, the energy regulator, has announced the energy price cap for the period of July to September 2023.
The current Ofgem price cap is set every three months and has been placed at an annual £2,074 for a typical household paying by direct debit.
That is down from the £3,280 set for April to June, though during this period households were protected by the lower Energy Price Guarantee (EPG).
The guarantee, introduced in October 2022, means a typical household's annual energy bill for gas and electricity is around £2,500. But, it isn't a total cap on what you could ultimately pay.
Crucially, neither the price cap nor the EPG set an absolute limit on how much your bills can cost. It only limits the unit cost of energy, setting a maximum price per kilowatt hour (kWH) energy firms can charge you for the gas and electricity you use, plus standing charges.
Essentially the government is subsiding the difference between the energy price cap and the EPG.
The next quarterly energy price cap update will be on 25 August 2023, and covers October - December.
So, why does the Ofgem price cap matter? And why is it important that it has dropped below the EPG rate?
Ofgem energy price cap
Ofgem price cap vs Energy Price Guarantee - what's the difference?
Before the Energy Price Guarantee was introduced, costs were capped by the energy regulator Ofgem.
It sets the maximum price energy suppliers can charge consumers on variable tariffs for each kilowatt hour (kWh) of energy they use. It is set every three months and is influenced by the wholesale price energy suppliers have to pay.
It was always intended to be an emergency backstop to prevent energy firms from overcharging customers on variable tariffs. And fixed tariffs were usually the best way to secure cheaper energy bills.
But the energy crisis turned the market on its head. In the face of the spiralling cost of wholesale gas, the Ofgem price cap became unaffordable, which is why the government replaced it with the Energy Price Guarantee.
In other words, the energy price cap was getting so out of hand it too had to be capped, with the government stepping in.
Right now, the EPG is protecting most households from even higher energy prices, but from July it will be undercut by the energy price cap. As a result, the price cap will take over as the main limit on our energy bills.
What does new Ofgem energy price cap mean for your bills?
Until July, the typical household's annual energy bill will be limited by the EPG to around £2,500. And, come July, that annual bill for typical energy costs will drop to £2,074.
According to forecasts from the analyst Cornwall Insight, the price cap will drop once again for the final quarter of this year to £1,960. It has predicted that the energy price cap will then move to £2,026 for the first three months of 2024.
Read more
- How to cut energy costs with minimal effort
- What the forecasters say: will energy prices fall this year?
- Energy suppliers also have hardship funds to help their customers in need.
- You may also find our article on unfair direct debit increases useful. See how The Money Edit helped one reader bring her direct debit down after her energy firm increased it from £117 to £369.
Look After My Bills Newsletter
Get the best money-saving tips, tricks and deals sent straight to your inbox every week. Make sense of your money in partnership with The Money Edit.

Adam is the Editor at The Money Edit.
He has been working to save you money as a personal finance and consumer journalist, editor and commentator for several years. His work has appeared in the HuffPost, Which?, i paper and This is Money, plus various TV and radio as a personal finance, consumer rights and scams expert, which include BBC Rip Off Britain, LBC, 5 News, Steph's Packed lunch and Newsround to name a few. He was previously the senior consumer rights editor at Which?.
When Adam isn't working he's watching Norwich City yo-yo between leagues or walking his dog.
-
-
Octopus Energy relaunches energy tracker deal – we explain what you need to know and if it could save you money
If you’re an Octopus Energy customer, you may be able to save on your energy bills with the relaunch of its tracker deal. We look at how it works
By Sue Hayward Published
-
Three energy firms pay £8m in switching compensation - has your provider paid out?
More than 100,000 customers have received compensation after changing providers, but is now a good time to switch energy suppliers?
By Tom Higgins Published
-
Octopus Energy relaunches energy tracker deal – we explain what you need to know and if it could save you money
If you’re an Octopus Energy customer, you may be able to save on your energy bills with the relaunch of its tracker deal. We look at how it works
By Sue Hayward Published
-
Three energy firms pay £8m in switching compensation - has your provider paid out?
More than 100,000 customers have received compensation after changing providers, but is now a good time to switch energy suppliers?
By Tom Higgins Published
-
HMRC tax credit renewal packs: act quickly to avoid losing benefit payments
Households receiving tax credits will be asked to confirm their details to ensure they continue to receive their entitlement. Here’s everything you need to know to make sure you don’t miss out on up to £3,480 a year
By Tom Higgins Published
-
Mobile provider rewards: how to earn up to £700
Your phone could be the key to unlocking hundreds of pounds worth of discounts and freebies that you don’t even know about. We reveal which mobile providers offer the best rewards
By Vaishali Varu Published
-
How much do cooking appliances cost to run?
Energy-saving cooking tips from the Energy Saving Trust
By Katie Binns Published
-
Virgin Media leaves thousands without broadband: are customers entitled to compensation?
Tens of thousands of Virgin Media customers were hit by broadband outages yesterday. We explain your rights if your broadband goes down
By Katie Binns Published
-
Broadband switching service delayed - how it will eventually work and why it’s crucial to switch
A broadband switching service designed to make it easier to change to a cheaper or faster deal has been delayed. We explain how you can still avoid huge increases to your monthly internet bill
By Katie Binns Published
-
Heat pumps: why you can claim a £5,000 government grant for longer
Why you now have more time to apply for a government grant towards getting a heat pump in your home
By Sue Hayward Published