UK Energy Bills — Frequently Asked Questions

Question 1

What is the energy price cap?

Accepted Answer

The energy price cap is set by Ofgem and limits the maximum amount suppliers can charge for each unit of energy and standing charges on default/variable tariffs. It changes every three months (January, April, July, October). Fixed tariffs sit outside the cap.

Sources: Ofgem (https://www.ofgem.gov.uk/)

Question 2

When does the cap change?

Accepted Answer

Ofgem reviews and announces the cap roughly two months before it takes effect, then it changes on the 1st of January, April, July and October each year.

Sources: Ofgem (https://www.ofgem.gov.uk/)

Question 3

What is a standing charge?

Accepted Answer

A standing charge is a fixed daily fee you pay regardless of usage. It covers the cost of keeping your home connected to the grid, network upgrades, and recovering costs from failed suppliers (the SOLR levy).

Sources: Ofgem (https://www.ofgem.gov.uk/)

Question 4

How is my annual cost calculated?

Accepted Answer

We use Ofgem's typical domestic consumption values: 2,700 kWh of electricity and 11,500 kWh of gas per year (medium-use household). Your actual cost depends on your home, occupants and habits — use our postcode estimator for a tailored figure.

Sources: Ofgem (https://www.ofgem.gov.uk/)

Question 5

How long does it take to switch energy supplier?

Accepted Answer

Under Ofgem's Faster Switching programme, switches complete within 5 working days for most customers. There is also a 14-day cooling-off period in which you can cancel without penalty.

Sources: Ofgem (https://www.ofgem.gov.uk/); Citizens Advice (https://www.citizensadvice.org.uk/consumer/energy/energy-supply/)

Question 6

Are there exit fees for switching?

Accepted Answer

Some fixed tariffs charge £30–£60 per fuel if you leave early. Ofgem rules allow you to switch penalty-free within the last 49 days of a fixed contract. Variable/standard tariffs have no exit fees.

Sources: Ofgem (https://www.ofgem.gov.uk/)

Question 7

Will my supply be interrupted when I switch?

Accepted Answer

No. Switching only changes who bills you — the gas and electricity coming into your home stay the same. There is no engineer visit and no break in supply.

Sources: Citizens Advice (https://www.citizensadvice.org.uk/consumer/energy/energy-supply/)

Question 8

Should I switch to a fixed or variable tariff?

Accepted Answer

Fixed tariffs lock your rates and protect against rises but you may miss out on falls. Variable tariffs follow the cap. If a fixed deal is meaningfully below today's cap and you value certainty, fixing usually wins. Our Rip-Off Detector compares your current rate to the best available deals in seconds.

Sources: Ofgem (https://www.ofgem.gov.uk/)

Question 9

How accurate are the price predictions?

Accepted Answer

Short-term forecasts (next quarter) are typically within ±5% because wholesale gas prices for that period are largely already locked in via futures markets. Forecasts beyond 6 months carry meaningful uncertainty and should be treated as informed estimates, not guarantees.

Sources: Ofgem (https://www.ofgem.gov.uk/)

Question 10

When will UK energy prices drop meaningfully?

Accepted Answer

A return to pre-2021 levels is unlikely in the short term. Most analysts expect the cap to move in a narrow band over the next 6 months with a modest downward bias if European wholesale gas stays stable.

Sources: Ofgem (https://www.ofgem.gov.uk/); Energy UK (https://www.energy-uk.org.uk/)

Question 11

What controls UK energy prices?

Accepted Answer

Wholesale gas is the single biggest driver — gas sets the marginal price of electricity around 70% of the time. Network costs, environmental and social policy costs, supplier operating margins and the SOLR levy make up the rest of the cap.

Sources: Ofgem (https://www.ofgem.gov.uk/)

Question 12

What help is available if I can't afford my energy bill?

Accepted Answer

You may be eligible for the Warm Home Discount (£150 off winter bills), Cold Weather Payments, the Winter Fuel Payment, or supplier hardship schemes. Contact your supplier first — they are required by Ofgem to agree an affordable payment plan.

Sources: GOV.UK (https://www.gov.uk/); Citizens Advice (https://www.citizensadvice.org.uk/consumer/energy/energy-supply/); Ofgem (https://www.ofgem.gov.uk/)

Question 13

What is the Priority Services Register?

Accepted Answer

A free Ofgem-mandated register for people of pensionable age, with disabilities, long-term health conditions or young children. It gives priority support during outages, advance notice of planned interruptions, and accessible bills. Sign up via your supplier or network operator.

Sources: Ofgem (https://www.ofgem.gov.uk/)

Question 14

How do I read my energy bill?

Accepted Answer

Look for: unit rate (p/kWh), standing charge (p/day), tariff name and end date, MPAN/MPRN numbers, and your projected annual cost. We have a full walkthrough on the How to Read Your Energy Bill page.

Sources: Citizens Advice (https://www.citizensadvice.org.uk/consumer/energy/energy-supply/)

Question 15

How often is the data updated?

Accepted Answer

Provider tariffs are verified daily. Global wholesale prices update every 6 hours from official exchange data. Predictions and the 6-month forecast model are refreshed at least weekly.

Question 16

Is PowerGuardian affiliated with any energy company?

Accepted Answer

No. PowerGuardian is fully independent. Some onward links are affiliate links that may earn us a small commission at no cost to you, but they never affect rankings — our comparisons are based purely on price and contract terms.

Question 17

Where does your data come from?

Accepted Answer

Tariff data is collected from supplier websites and Ofgem-licensed comparison feeds. Wholesale prices come from public exchange data (NBP, TTF, ICE). The full sourcing list is on our Methodology page.

Sources: Ofgem (https://www.ofgem.gov.uk/)

UK Energy Bills — Frequently Asked Questions

Energy basics & the price cap

Switching supplier

Price predictions

Bills & financial help

About PowerGuardian

Still have a question?

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Should I Switch Energy Supplier?

Rip-Off Detector

UK Energy Bill Calculator

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UK Energy Bills — Frequently Asked Questions

Energy basics & the price cap

What is the energy price cap?

When does the cap change?

What is a standing charge?

How is my annual cost calculated?

Switching supplier

How long does it take to switch energy supplier?

Are there exit fees for switching?

Will my supply be interrupted when I switch?

Should I switch to a fixed or variable tariff?

Price predictions

How accurate are the price predictions?

When will UK energy prices drop meaningfully?

What controls UK energy prices?

Bills & financial help

What help is available if I can't afford my energy bill?

What is the Priority Services Register?

How do I read my energy bill?

About PowerGuardian

How often is the data updated?

Is PowerGuardian affiliated with any energy company?

Where does your data come from?

Still have a question?

Continue Saving Money

Should I Switch Energy Supplier?

Rip-Off Detector

UK Energy Bill Calculator

Compare Energy Suppliers

Octopus Energy

So Energy

British Gas

Frequently Asked Questions

Is it worth switching energy supplier right now?

How long does switching energy supplier take?

Are there exit fees for switching?

Will switching supplier interrupt my supply?

Should I choose a fixed or variable tariff?

Best Value Energy Suppliers Report 2026

Save This Advice