What is the Ofgem Energy Price Cap?
The Ofgem energy price cap is a limit on the amount of money that energy suppliers can charge customers for each unit of gas and electricity. It is set by the energy regulator, Ofgem, and is reviewed every three months.
The Energy Price Cap is calculated based on several factors, including the wholesale cost of energy, network costs, and policy costs. It is designed to protect consumers from high energy prices.
Is There a Price Cap for Businesses?
There is no price cap in place for businesses in the UK. However, earlier this year, the UK Government introduced the Energy Bills Discount Scheme, known commonly as the EBDS, to help businesses with their energy bills.
The new scheme offers a discount on non-domestic gas and electricity unit rates; this means that it's this scheme that applies to your business, not the Ofgem Energy Price Cap.