Pay As You Go Price Cap

We’ve always been proud to give our Pay As You Go customers exactly the same price as we give to all of our customers – that’s the heart of our ethical price promise.

We’ve been telling Ofgem, the energy industry regulator, for a long time that Pay As You Go customers are being overcharged by other energy companies – equal pricing for all, that’s the way we think it should be.

Ofgem and the Competition Markets Authority have now introduced a price cap that will ensure PAYG customers are not overcharged – although it doesn’t guarantee that they still won’t get access to the best deals with other energy companies.

As an Ecotricity PAYG customer, you can be assured that if you choose our 100% green electricity or frack-free green gas, you’ll still get our latest best price. We’re proud of that.

What is the PAYG price cap?

As a result of serial over-charging of PAYG customers by many energy companies across the industry, the Competition Markets Authority and Ofgem have imposed a cap on how much energy companies can charge those customers.

You can find all the detail you need about the cap, whether it will change, and how long it applies for on the Ofgem website here.

Does that mean I will receive price reduction?

In line with the new cap, we’re lowering the unit rate of energy for PAYG customers, but increasing standing charge.

The unit rate is what we charge per unit of the energy you actually use.

The standing charge is a fixed cost, which reflects the cost of actually getting that energy to you – and has nothing to do with the actual amount of energy you use. 

Most PAYG customers will therefore see their energy bills go down. However, some will see their bills go up because of the cap. That’s because they use such a small amount of energy, they won’t benefit from the unit rate reduction – and will have to pay that bit extra to cover the increased standing charge.



Last updated: 1 March 2017