Default price cap
Since 1 January 2019, a price cap has been in place for SVTs and default tariffs. If you have never switched tariff or supplier, or if you took no action when your last fixed deal ended, you are likely to be on one of these tariffs. SVTs or default tariffs are typically substantially more expensive than the cheapest deals on the market. The cap aims to ensure that customers pay a ‘fair’ price for energy, with any price changes reflecting genuine changes in energy costs experienced by suppliers.
This price cap is for people paying by direct debit or by standard credit. Those on standard credit typically pay 6 per cent more than those paying by direct debit. See here if you have a prepayment meter. If you are on a fixed-term contract, your prices are fixed and are not covered by the cap. However, when your contract ends, you will automatically be moved to a default tariff if you do not have a new contract in place or switch supplier.