What is the energy price cap?

The energy price cap limits the price of a single unit of energy for customers paying for variable energy tariffs.

Under the price cap, typical energy bills for a medium use household are currently around £1,641 per year, or – more helpfully, as it's only in place for three months, from April to June 2026 – £137 per month.  

On 1 July, the price cap will rise by around £18 per month. So a medium use household will spend around £1,862 per year. 

This is mostly due to the ongoing conflict in the Middle East, which has pushed up global wholesale gas prices and made them very volatile. 

Overall, it's a 13% increase. However, that's not split evenly between fuels. Customers will see a smaller price increase of around 5% on the cost of their electricity compared to gas, which is rising by 24%. Ofgem says this 'reflects the increase in the amount of renewable generation on the system and therefore reduced reliance on gas to generate our electricity'.

The price cap is not a limit on your total bill. It restricts the price per unit (or kWh) that energy companies can charge. You can find the average rates below.

Your total bill depends on how much electricity and gas you use. 

The price cap does not apply to fixed tariffs. Competitive rates are limited at the moment, but it's still worth comparing prices. We don't recommend paying variable tariff rates, which are likely to stay very high for the rest of the year.

We've listed the latest cheapest deals on the market: how to get the best energy deal.

Use our free, independent energy comparison service to compare gas and electricity prices and find the best provider for you. 

How does the energy price cap work?

The price cap was introduced by Ofgem in 2019 to ensure fair prices for customers who don’t actively switch energy provider to make the most of deals.

The price cap is not a limit on the amount you pay, but on the amount that suppliers can charge for each unit of energy you use and your daily standing charge.

Who does the energy price cap apply to?

It only affects standard variable tariffs (SVTs), also known as standard, default or out-of-contract tariffs. You might also see them described as rolling or flexible tariffs.

Because competitive fixed deals have been limited in recent years, many households are currently paying variable rates for their energy. However, the proportion that pay these has been going down as the number of fixed deals available has increased. 

According to the latest figures from Ofgem, there are currently around 33 million domestic energy accounts on SVTs and 22 million on fixed tariffs.

Thinking of fixing a tariff instead? Find out how to get the best energy deal or use our energy comparison service to compare gas and electricity prices. 

What is the energy price cap from April to June 2026?

The energy price cap dropped by 7% on 1 April 2026, compared with the previous level. This means that a typical bill for customers paying by direct debit is £1,641 a year (or around £137 a month).

Between 1 April and 30 June 2026, the average unit rates are as follows:

For direct debit customers:

• Electricity: 24.67p per kWh (down from 27.69p) with a standing charge of 57.21p per day (up from 54.75p)
• Gas: 5.74p per kWh (down from 5.93p) with a standing charge of 29.09p per day (down from 35.09p)

If you have a prepayment meter, you pay the same standing charge as direct debit customers, but slightly lower rates per kilowatt hour:

• Electricity: 23.93p per kWh (down from 26.84p) with a standing charge of 57.21p per day (up from 54.75p)
• Gas: 5.53p per kWh (down from 5.72p) with a standing charge of 29.09p per day (down from 35.09p)

This works out at £44 lower than the direct debit cap level.

If you pay when you receive your bills, your rates are the most expensive:

• Electricity: 26.05p per kWh (down from 29.23p) with a standing charge of 65.73p per day (up from 62.97p)
• Gas: 6.04p per kWh (down from 6.25p) with a standing charge of 36.71p per day (down from 42.91p)

This works out at £131 higher than the direct debit cap level.

These are the average prices across England, Scotland and Wales. Your exact rates will depend on where you live.

How providers split the unit rate and standing charge is up to them, and depends on where you live, but the total cost cannot be higher than the cap.

The widely reported figure for the price cap (£1,641 for April to June 2026) is an illustration based on what it might cost over a year, if rates stayed the same, for a household using a medium amount of energy (defined as 11,500kWh of gas and 2,700kWh of electricity per year). This means your bills might look very different depending on your circumstances.

We've run this electricity price through our appliance test data to show you how much your household appliances will cost to run.

What will the energy price cap be from July 2026?

The energy price cap will rise by 13% on 1 July, the energy regulator Ofgem (which sets the cap) has announced. 

This means that a typical bill for customers paying by direct debit will increase by around £222 a year to £1,862 a year (or around £18 per month).

Between 1 July and 30 September 2026, the average unit rates will be:

For direct debit customers:

• Electricity: 26.11p per kWh (up from 24.67p) with a standing charge of 57.19p per day (down from 57.21p)
• Gas: 7.33p per kWh (up from 5.74p) with a standing charge of 29.04p per day (down from 29.09p)

If you have a prepayment meter, you pay the same standing charge as direct debit customers, but slightly lower rates per kilowatt hour:

• Electricity: 25.32p per kWh (up from 23.93p) with a standing charge of 57.19p per day (down from 57.21p)
• Gas: 7.07p per kWh (up from 5.53p) with a standing charge of 29.04 per day (down from 29.09p)

If you pay when you receive your bills, your rates are the most expensive:

• Electricity: 27.56p per kWh (up from 26.05p) with a standing charge of 65.74p per day (up from 65.73p)
• Gas: 7.71p per kWh (up from 6.04p) with a standing charge of 36.69p per day (down from 36.71p)

These are the average prices across England, Scotland and Wales. Your exact rates will depend on where you live.

What's expected for energy prices for the rest of 2026?

The longer the conflict in the Middle East continues, the greater the impact it's likely to have on future energy bills.

Cornwall Insight explains that 'our forecasts are already pointing to a slight rise landing [in October] just as people start to turn their heating back on for winter.

 'A lot of people assume that if the conflict in the Middle East ended tomorrow, prices would return to their pre-conflict levels fairly quickly. However, that may be overly optimistic. The damage to infrastructure, the disruption to supply chains and the erosion of market confidence will not unwind overnight, and the impacts could be felt in bills for longer than many expect.' 

The extent of the impact on prices will depend on how long gas prices remain volatile.  

For utility bills in the UK, gas prices will see much more impact than electricity prices, which means winter bills that include the gas used for central heating are likely to be where you'll feel the shock the most.

Changes to the energy price cap only affect those on out-of-contract variable tariffs. If you're currently paying variable rates, or you're on a contract that is due to expire soon, we recommend shopping around for a new deal rather than staying on the price cap. 

Ways to reduce energy bills

Any cutbacks you can make to your energy usage could help soften the blow of increasing bills. Here are some ways to do this:

• Lowering your combi boiler's flow temperature – This small tweak can lower your gas bills while still keeping your home warm. Find out how to adjust your boiler flow temperature.
• Turning down thermostatic radiator valves in unoccupied rooms – Keep the heat you generate in the rooms that need it, so that your central heating isn't on for as long. 
• Heat the person, not the home – This isn't possible for all households, but if you are able to, it's usually cheaper to heat yourself rather than the whole house. Look for electric blankets and heaters for quick bursts. 
• Use white goods efficiently – Try to only put your washing machine and dishwasher on when they're full and use eco settings where possible. Washing at 30^oC or below is usually more energy-efficient than hot washes. Our guide to how much your appliances cost to run has specifics on which appliances make the biggest difference on your bills.
• Add loft insulation and draft proofing – Improving your loft insulation is a good way to make your home feel cosier in the winter months and bring down your bills. Draft proofing can be a cheap way to get started.
• Improve your home's energy efficiency– For advice personalised to your home, check how you could make energy saving improvements with our free home energy planning service.  

When it comes to your payments, you might be able to make small savings by opting for paperless bills and managing your account online (as some suppliers charge extra for paper bills). Getting a smart meter installed, or sending regular meter readings, will ensure your bills are accurate. 

Find out more about ways to save on your energy bills and how to get help if you are struggling to pay your energy bills