Energy regulator Ofgem recently announced it is increasing the energy price cap by 6.4% in April – but what does this mean?
At The Student Energy Group (TSEG), we think it’s incredibly important that our customers understand their energy bills, from what they’re paying to why they’re paying it. So, we’ve created a handy guide to the energy price cap and what it means for you, as a student, landlord or homeowner.
So, what actually is the energy price cap?
In the UK, energy suppliers must follow regulations which specify the maximum amount they are allowed to charge consumers for every unit of energy they use, as well as standing charges. This limit is known as the energy price cap, and is set by the UK energy regulator, Ofgem.
The price cap was first introduced by the government in 2019 as a measure to ensure companies weren’t over-charging consumers for gas and electricity. Since then, it has been reviewed and set every three months by Ofgem, and applies to around 22 million homes in England, Scotland and Wales.
What’s happening in April?
In April, Ofgem is increasing the energy price cap by 6.4% – this means that the cost per unit of energy will go up from 24.86p per kWh, to 27.03p per kWh for electricity. Gas prices will increase from 6.34p per kWh to 6.99p per kWh
Standing rate charges are also changing. The standing rate charge for electricity will be lowered from 60.97p per day to 53.80p per day, Gas will increase from 31.65p per day to 32.67 per day.*
It’s important to know that, while units and standing charges are capped, your total bill isn’t – how much you pay per month will depend on where you live, how you pay your bill and the type of meter you have ), as well as your consumption (how much energy you actually use).
Putting it into perspective, the 6.4% increase means a typical household will see their gas and electricity bill rise by around £9.25 a month**.
What is a standing charge?
A daily standing charge is a fixed price which is charged every day, regardless of how much energy you actually consume. It essentially covers the cost of being connected to the energy network as well as essential maintenance and upgrade costs such as:
- Maintaining the pipes and wires which carry energy supplies around the country.
- Meter readings – vital in making sure you’re paying the correct amount!
- Investment, research and upgrades to the energy infrastructure.
Standing charges are set by your energy supplier but regulated by Ofgem to ensure fairness. They can vary depending on where you live, how complex the local power network is, and population demands. You can get an idea of the tariff you can expect to pay for your location with our handy tariff checker – just pop your postcode in and we’ll do the rest!
What does this mean for me?
Whether you’re a landlord or a tenant, it’s a good idea to know where this change to the price cap puts you.
If you’re on a fixed price contract already, chances are you won’t notice a difference to your monthly outgoings – but make sure you check your contract!
If you’re not on a fixed contract, it’s a good idea to check what rates are available to you and whether you might be better off switching to a fixed rate – such as our Silver Birch package. This way, you’ll have peace of mind that the rate you pay for your energy usage won’t increase and you won’t have to re-plan your budget!
Keep an eye out for our regular blog posts which explain other key changes, updates and tips for staying in-the-know about your energy.
Feel free to reach out to the team here at TSEG if you have any questions or want to chat further.
*Figures from Ofgem, 2025
**Stat from BBC News, 2025
