What is a capped tariff?

Some energy suppliers offer capped tariffs which guarantee that your gas or electricity bill will not rise above a certain level and, if the price of gas and electricity is reduced, your bill will come down. These tariffs aren't as common as they used to be and are generally speaking a lot more expensive than variable tariffs.

A capped tariff runs for a fixed period of time, which varies between energy suppliers and is based on your monthly direct debit payments. 

Fixed energy tariffs also protect you against price rises but you won't benefit from any price drops. They are usually cheaper than capped tariffs and also run for a fixed time period.

Find out more about capped and fixed energy tariffs in our Understanding Energy Tariffs section.