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Explained in plain English

Who benefits from the price cap?

The energy price cap primarily benefits households by limiting how much suppliers can charge for each unit of gas and electricity. It protects consumers from excessive costs, especially during times of market volatility like that seen with the Middle East war disrupting supplies. However, it doesn't cap your total bill, only the unit price.

Stories that explain this

BP Profits Nearly Quadruple to $8.46bn on Middle East War

Questions this opens up

How is the price cap calculated? Do energy suppliers lose money? What is the energy price guarantee?

Related explainers

Who benefits from BP's profits? How often does Ofgem change prices? Why are UK prices so high? How does war affect oil prices? Do all pensions invest in oil? Will changing funds affect my returns? Can I change my pension investments? How do I check my pension investments?

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