Mortgages.scot

The question below is one of 5 that I have had relating to this subject, I didn't expect this would be so confusing to many people so wanted to clear it all up.

Hi, so given the price cap on my gas bill will keep it at £2,500, how does that work? I will be billed up to £2,500 and it will stop or does it work some other way? I am confused.

What is the price cap?

As most know the government advised gas would be capped at £2,500 pa. That is based on average usage across the country. It simply means this is what the average household will pay instead of suggested figures for some of £5,000 or more.

What the price cap isn't?

It is not a hard limit! If you use more than £2,500 of gas in a year you will be billed more. It is not a case of no matter how much gas you use you will never pay more than the cap of £2,500. If you do get billed more then there are still savings. That is without government support you would still be paying far more whatever your bill is.

That is it, pretty simple. Unfortunately, everyone keeps using the words "Price Cap". Yes, even I used it but it is what everyone generally understands. It is not a cap though.