What Does the Lower Price Cap Mean for Your Business?

You may have heard in the news recently that the energy regulator has lowered the price caps which means that energy bills are set to fall for millions of British households and businesses as soon as April.

Costs were falling anyway during the end of 2019, leading into 2020, in particular the cost of gas. Now, they are currently at their lowest prices for 3 years and this only set to reduce further.

Essential Energy Price Cap Information

Why Was the Price Cap Introduced?

The energy price cap was introduced in order to protect customers who do not switch from overpaying for their energy; this includes, people on poor value default or standard variable tariffs.

It was also introduced to encourage competition in the retail market. If there were more competitive prices amongst energy suppliers, customers’ bills would be even lower bills if they switch.

Before & After: What Is the Difference in Energy Bills Prices Now?

Both the default price cap and pre-payment meter cap have been lowered. The default price cap will be reduced from £1,179 to £1,162 during April through to September, and the pre-payment meter cap will be reduced from £1,217 to £1,200 per year for the April to September.

When the energy price cap was first introduced, it has been estimated that it has saved customers on average up to £1bn on their energy bills.

Why Is It Being Lowered?

The energy price cap is being lowered due to the wholesale cost of gas significantly falling. Consequently, this will lower energy bills for around 15 million households and businesses.

How Can Your Business Make Savings on Your Energy Bills?

The UK has 6 main big energy suppliers: EDF Energy, Centrica’s British Gas, Ovo Energy, Innogy’s Npower, and Iberdola’s Scottish Power, amongst many others. How do you choose between all of these suppliers though and how do you find the best deal?

Luckily, at Ocean Telecom, we can help compare prices from the top UK providers and find the greatest deal for your business requirements. We work together with our partners to get the best value for our customers’ energy contracts, so get in contact with us today to see how we can help you.