Last updated: 27 May 2026
The energy price cap is a legally enforced limit on the amount energy suppliers can charge customers on standard variable and default tariffs. Set by Ofgem, the energy market regulator, it protects millions of households from being overcharged for their gas and electricity. But it does not guarantee you are on the cheapest deal available.
On 27 May 2026, Ofgem announced a 13% rise in the energy price cap from 1 July 2026, the largest increase since the energy crisis of 2022. For a typical dual-fuel household paying by direct debit, this means bills will rise by around £18 per month from July.
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In This Guide
The energy price cap is a legal requirement that all energy suppliers must comply with. It sets a limit on two things: the unit rate, which is the amount you pay per kilowatt hour (kWh) of gas or electricity, and the standing charge, a fixed daily charge applied whether or not you use any energy.
The cap does not set a ceiling on your total bill. If you use more energy than the average household, you will pay more. If you use less, you will pay less. It only limits the rate at which your supplier can charge you.
Your tariff type will be shown on your energy bill. If you are on a Standard Variable or Deemed Contract tariff, the cap applies to you. If you are on a fixed-rate deal, the cap does not affect you until that deal ends.
The cap can also vary by region, due to differences in energy transportation costs. Customers who do not pay by direct debit may face higher rates.
The energy price cap was introduced to protect households on default tariffs from being overcharged. Many customers end up on standard variable tariffs after a fixed-rate deal expires, often without realising they have moved onto a more expensive rate.
The cap limits what suppliers can charge these customers, providing a safety net against excessive pricing. However, it does not replace the savings available by actively comparing and switching to a cheaper deal. Switching remains the most effective way to reduce your energy bills.
On 27 May 2026, Ofgem confirmed the energy price cap will rise by 13% from 1 July 2026. The rise affects gas and electricity differently: gas bills will increase by around 24%, while electricity bills will rise by around 5%.
The table below shows how the cap has changed over recent quarters. Figures are based on a typical dual-fuel household paying by direct debit, using standard Typical Domestic Consumption Values (TDCVs) of 2,700 kWh electricity and 11,500 kWh gas per year.
| Time Period | Typical Annual Bill | Change |
|---|---|---|
| 1 July 2025 to 30 September 2025 | £1,720 | ▼ Down 7% |
| 1 October 2025 to 31 December 2025 | £1,755 | ▲ Up 2% |
| 1 January 2026 to 31 March 2026 | £1,758 | ▲ Up 0.2% |
| 1 April 2026 to 30 June 2026 | £1,641 | ▼ Down 6.7% |
| 1 July 2026 to 30 September 2026 NEW | £1,862* | ▲ Up 13% |
*Announced 27 May 2026. Based on previous Typical Domestic Consumption Values (TDCVs). Under updated TDCVs, which reflect lower average household energy use, the equivalent figure is £1,663 per year.
Not all households will see their bills rise from July 2026. Around 40% of domestic accounts, approximately 22 million, are currently on fixed-rate tariffs and will not be affected until their deal expires.
For everyone else, the rise applies to standard variable tariffs from 1 July 2026. This includes:
If you are unsure which tariff you are on, check your most recent energy bill or contact your supplier directly.
The 13% rise is primarily driven by a 28% increase in wholesale gas prices over the past three months, largely due to ongoing conflict in the Middle East and wider global energy market volatility.
There are some mitigating factors:
The most effective action you can take right now is to compare and switch to a fixed-rate tariff. Many fixed deals are currently available below the new July 2026 cap level, giving you price certainty for 12 to 24 months regardless of what happens to the cap in future quarters.
The energy price cap is a legal limit set by Ofgem on the unit rates and standing charges that energy suppliers can apply to customers on standard variable or default tariffs. It does not cap your total bill, only the rate you are charged per unit of energy used.
From 1 April 2026 to 30 June 2026, the cap is £1,641 per year for a typical dual-fuel household paying by direct debit. From 1 July 2026, this will rise by 13% to £1,862 per year, as announced by Ofgem on 27 May 2026.
The cap applies if you are on a standard variable or default tariff. If you are on a fixed-rate tariff, the cap does not apply to you until that deal expires. Check your energy bill to see which tariff you are on, or contact your supplier if you are unsure.
The rise is driven by a 28% increase in wholesale gas prices over the past three months, largely due to ongoing conflict in the Middle East and global energy market volatility. Gas bills will rise by around 24%, while electricity bills will rise by around 5%, cushioned by the growing share of renewable generation on the UK grid.
If you are currently on a standard variable tariff, switching to a fixed-rate deal before 1 July 2026 could protect you from the 13% rise. Many fixed deals are currently available below the new cap level. You can compare available tariffs in minutes on Simply Switch.
Yes. Prepayment meter customers are covered by the energy price cap. Around 6 million prepayment meter households will be affected by the July 2026 increase. If you are struggling to top up your meter, contact your supplier for support.