Energy is a competitive market with strong consumer protections, but bills can be confusing and mistakes happen. Knowing how the system works — the price cap, meters, switching and your right to complain — puts you in control.

The price cap and your bill

If you’re on a standard variable tariff, Ofgem’s price cap limits the unit rates and standing charge you pay, and it’s reviewed every three months. It caps the rates, not your total bill — how much you pay still depends on how much you use. Sending regular meter readings (or using a smart meter) keeps your bills accurate and avoids nasty estimated catch-up charges. Budget 2026 announced that the standing charge on household gas bills is to be scrapped (aiming for the end of 2027) and that VAT on household electricity stays at 0% until July 2027 — see our energy-bill support page.

Meters and switching

You can ask your supplier for a smart meter, though you don’t have to have one. You’re also free to switch supplier or tariff to get a better deal; comparing tariffs takes minutes. If you’re struggling to pay, your supplier must offer an affordable payment plan — and there’s more help on our energy bill support page.

Billing mistakes and back-billing

Under Ofgem’s back-billing rule, a supplier can’t charge you for energy you used more than 12 months ago if it failed to bill you correctly and it wasn’t your fault. If you’re landed with a large catch-up bill, challenge it.

Complaints — and if your supplier goes bust

Complain to your supplier first. If it isn’t resolved within 8 weeks, or you get a “deadlock” letter, you can take it to the free Energy Ombudsman, whose decision is binding on the supplier. And if your supplier goes out of business, don’t panic — Ofgem appoints a new one to take over, and any credit balance is protected, so your supply won’t be cut off.

What to do next

Submit a meter reading, review your tariff, and challenge any bill that looks wrong. If your supplier won’t put things right, escalate to the Energy Ombudsman and check them in our Complaints Directory.

Sources

Ofgem (energy price cap; back billing; supplier of last resort); Energy Ombudsman (8-week and deadlock process); Citizens Advice. Reviewed: 3 September 2026.