Millions of UK households will pay more for electricity and gas from 1 July to 30 September 2026, after Ofgem announced a 13% rise in the energy price cap.
The average annual household bill for someone on a standard default tariff and paying by direct debit will rise from £1,641 to £1,862, increasing typical dual-fuel household bills by around £55 over three months, or roughly £18 a month.
Ofgem have said the increase is a "result of higher wholesale gas prices, caused by the ongoing conflict in the Middle East".
What is the energy price cap?
The energy price cap sets the maximum price suppliers can charge per unit of electricity and gas, as well as a daily standing charge.
It applies to households on standard or default tariffs but does not cap the total bill, which depends on how much energy is used. Ofgem reviews the cap quarterly to account for wholesale energy prices, policy costs, and network charges.
The scheme replaced the Energy Price Guarantee, which capped bills at £2,500, but then reverted back to the energy price cap.
How much has the energy price cap increased?
The average annual household bill will rise by £221, equivalent to a 13% increase compared with the previous quarter.
Tim Jarvis, CEO of Ofgem, said: “Today’s price change reflects continued volatility in global energy markets. This means higher wholesale gas prices, driven by ongoing conflict in the Middle East, is impacting the price we pay for energy.
“We understand many will be concerned about rising prices. While energy use typically falls over the summer months, there are still practical steps households can take to manage costs, including exploring fixed tariffs or changing their payment method. Smart meter customers can also take advantage of half price or cheap electricity at the weekends."
Below are the latest energy price cap figures for 1 July to 30 September 2026. These are based on a typical household using electricity and gas and paying by Direct Debit in England, Scotland and Wales.
Component | New rate | Previous rate | Change |
|---|---|---|---|
Overall annual bill (dual fuel, Direct Debit) | £1,862 | £1,641 | +13.5% |
Electricity unit rate | 26.11p/kWh | 24.67p/kWh | +5.8% |
Electricity standing charge | 57.19p/day | 57.21p/day | -0.03% |
Gas unit rate | 7.33p/kWh | 5.74p/kWh | +27.7% |
Gas standing charge | 29.04p/day | 29.09p/day | -0.17% |
Who is affected by the energy price cap?
The price cap applies to around 33 million domestic accounts on standard or default tariffs, including prepayment meters. Households on fixed-rate tariffs, green tariffs, or business energy contracts are not directly affected.
Those who aren't affected are:
- Those on a fixed-rate energy deal
- Customers on green energy tariffs (exempt from the cap)
- Businesses and commercial users
Does the energy price cap limit your bills?
No, the energy price cap does not set a limit on your total bill – it only caps the unit rate suppliers can charge.
Your total energy cost will still depend on how much energy you use. The more electricity and gas your household consumes, the higher your final bill.
This is why energy efficiency measures, such as improving insulation, upgrading appliances, and reducing unnecessary energy usage, remain crucial in managing costs.
How to reduce your energy bills
Here are some ways to help reduce your energy prices:
- Switch to a fixed-rate tariff: If energy prices are expected to rise further, securing a fixed-rate deal could save money.
- Upgrade your home’s efficiency: Consider better insulation, double glazing, or heat pumps to reduce energy use.
- Monitor your energy usage: Smart meters can help track and reduce unnecessary consumption.
- Apply for Government schemes: Check eligibility for schemes like the Warm Home Discount or Winter Fuel Payment.
When is the next energy price cap review?
The energy price cap is reviewed quarterly – in January, April, July, and October.
The next quarterly review of the energy price cap is due at the end of August 2026, covering 1 October to 31 December 2026.
Total bills will continue to depend on how much electricity and gas a household uses, and standing charges may vary slightly by region.
Consumers are encouraged to monitor their energy usage, compare tariffs, and consider options like fixed-rate deals or government support schemes to manage costs effectively.
