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After weeks of preparation and measures of financial support being offered, the energy price cap rise comes into effect from today (Friday, April 1), with it rising by 54%.
This increase follows a 12% rise in October and will take effect this week, and is one of many financial pressures facing households as the cost-of-living crisis continues.
People might still have questions on how exactly the price cap works now that it has come into effect.
How the energy price cap works
As stated by the Money Saving Expert website: "The price cap sets a limit on the maximum amount suppliers can charge for each unit of gas and electricity you use, and sets a maximum daily standing charge (what you pay to have your home connected to the grid)."
This means that there is no upper limit to what a household would pay, as if you use more energy you pay more, and if you use less energy you pay less.
As the MSE website states: "It only applies to providers' standard and default tariffs, so if you're on a fixed-term energy deal, the cap doesn't apply. If you've not switched in the last year or so, it's likely you're on a capped tariff."