The price cap is set by Ofgem and places a limit on the maximum amount energy suppliers can charge for each unit of gas and electricity. It’s based largely on the wholesale energy market, which in recent times has significantly increased.
In the media, you may see headline annual costs, that help people understand the true monetary value of the price cap. However, these are based on a typical average domestic consumer, which can be very different to student accommodation with multiple individuals living in the same house. In reality, as the price cap increases, the monetary difference can be much greater for higher usage households, such as shared houses.
Prior to the energy crisis, the price cap was revised every six months, however Ofgem have now introduced more regular price caps, which will be reviewed every three months.
The next price cap review for October 2022 is due to be announced on the 26th August 2022, with industry experts currently predicting an increase of over 80%.