MT Week - What you need to know about the Energy Price Cap

I often mention the Energy Price Cap in passing when talking about energy prices but there’s a lot of confusion around how it actually works.

There’s the fact that while a headline figure is given, this is not actually what you pay - you could end up paying more or less depending on usage.

The figure is also annualised even though it changes every quarter.

Then there’s the fact that there are different rates depending on the type of tariff you’re on, where you live and how you pay your bill.

Given the Energy Price Cap is changing again today (1 October) - falling to £1,923 a year on average - and will stay in place until the next quarter, now seems as good a time as any to dig into the ins and outs of it.