The energy crisis explained

Help topics

1. Why are energy prices increasing?

Wholesale gas prices reached record levels during 2022. Record energy prices have been driven by a combination of factors, including increased demand as the world recovers from the COVID-19 pandemic and Russia’s invasion of Ukraine

2. What is the Energy Price Guarantee?

The UK Government has responded to rising energy prices by introducing the Energy Price Guarantee, replacing the price cap overseen by energy regulator Ofgem. 

The Energy Price Guarantee protects customers from increases in energy costs by limiting the amount suppliers can charge per unit of energy used. It limits the average bill for a typical household to an annual equivalent of around £2,500.

This winter (1 October 2022 to 31 March 2023) the Energy Price Guarantee is saving a typical household around £900, based on what energy prices would have been under the price cap.

Bills will be based on actual usage, so savings could be higher or lower depending on the size of a home, how well it’s insulated and how much energy is used.

3. How can I reduce my energy use to save money on my bills?

Reducing how much gas and electricity you use at home can help you save money on your bills.

You can find practical tips on how to reduce your energy usage while making sure you and your family stay safe, warm and well at home on our Reducing your energy usage page.

4. What do I do if I can’t pay my energy bills?

If you’re struggling to afford your energy bills, contact your gas and electricity suppliers as soon as possible.

Visit our Help with your energy bills page for more information about what to do if you can’t afford to pay your energy bills. 

5. How are you helping households during the cost-of-living crisis?

Together with our partners, we’re helping households that are struggling to stay safe and warm at home because of the cost-of-living crisis. 

You can find full details of how we could help you and your family this winter on our Helping communities in crisis page.