When does the new energy price cap come into force and will it save you any money?

THE energy price cap limits gas and electricity bills for certain customers — but how much could you save?

Here’s all you need to know about the money-saving measure.

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When does the new energy price cap come into force?

The energy cap was introduced in January 2019 and is set by industry regulator Ofgem to ensure customers aren’t ripped off when their contracts end.

It sets a limit on how much suppliers can charge for out-of-contract or default energy deals based on factors such as wholesale energy market costs.

The total savings for individual customers will depend on how much energy they use, the price of their current tariff, whether they have both gas and electricity and how they pay for their energy.

In total, the price cap will help around 11 million households in Britain to save around £1billion, according to Ofgem.

Will the energy price cap save you any money?

Ofgem sets the price cap twice a year for a six-month period each.

Suppliers have only been able to charge up to £1,138 on their default tariffs between April and September 2021 based on a cap that was announced in February.

The energy regulator announced in August that the price cap would rise by £139 from October 1 to £1,277 – the highest since the cap launched in January 2019.

This cap will last until the end of March 2022, when a new limit will be announced for April.

That means your costs will actually rise if you are on a default deal.

You could save money by shopping around.

However, this has become harder in recent weeks.

Rates are rising across the board at the moment as all suppliers are getting hit by rising gas prices and increased demand.

10 firms have folded since August, including Utility Point and People’s Energy.

Comparison websites have also warned customers that there is a limited range of deals.

This post first appeared on thesun.co.uk