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 – £137 per month. This is in place from April to June 2026. 

On 1 April 2026 the price cap fell by around £10 per month compared with the January to March price cap, mostly owing to a change to policy costs announced by the government in the Autumn Budget in 2025.

From 1 July 2026, the price cap is expected to increase again. By exactly how much depends on how high, and for how long, the current energy price volatilty continues. 

The summer price cap will be announced in late May by energy regulator Ofgem, which sets it.

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 ones are limited at the moment, though it's worth comparing prices and checking how to get the best energy deal if you're paying variable rates.

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 cap on your payments, but a limit 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 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 21 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% as of 1 April 2026, compared with the previous level. This means that a typical bill for customers paying by direct debit has decreased by around £117 a year to £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 as £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 as £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 dependent on the region you live in, but the total cost cannot be higher than the cap.

The widely reported figure for the price cap (e.g. £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?

Volatile oil prices due to conflict in the Middle East mean that energy price predictions are more difficult than usual. On 31 March, energy forecasters suggested a potential 18% increase to the price cap from July. 

Three months-worth of wholesale prices are taken into account by Ofgem when it sets the cap. We're now halfway through the period that Ofgem is looking at to determine the July cap.

Wholesale prices rose sharply in March, following the start of the Middle East conflict. 

'Unless wholesale prices fall below pre-conflict levels - which looks unlikely given the scale of disruption and the uncertain repair timeline to key infrastructure in the region – a higher price cap in July is effectively unavoidable,' explains industry consultancy Cornwall Energy.

'The size of the increase depends on the duration of the conflict.'

The price cap is adjusted every three months.

We expect Ofgem to announce the finalised price cap rates for July in late May.

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

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

Cornwall Insight predicts that 'if higher wholesale prices continue, it will be the effects on the October cap that have the most impact'.

The extent of the conflict's impact on prices depends on by how much, and for how long, wholesale gas prices continue to be high and volatile.  

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, which is likely to be volatile in the coming months. 

Ways to reduce energy bills

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

• 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. 
• Only 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.
• 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