Page last updated on 1st July 2026
What is the energy price cap?
If you want to know what the energy price cap is, and how it could affect your electricity and gas bills, then read on.
What is the energy price cap?
The energy price cap is a set limit on the cost of each unit of gas and electricity used by consumers. Additionally, it sets a maximum standing charge amount. It applies to the standard or default tariffs charged by energy companies.
What is the price cap now and when will it change?
The July - September 2026 price cap is currently set at £1,862 (up 13% vs April to June). This is based on typical domestic consumption per year, for a dual-fuel customer paying by direct debit, and will vary based on how much energy you use.
The price cap will change again on October 1st, but we don't know by how much yet. Ofgem will announce the next price cap on August 26th, 2026.
To find out exactly what you are being charged, you should contact your energy supplier.
Below are the two previous price caps and the current price cap:
Time | Price cap on |
|---|---|
Previous price cap: | £1,641 a year |
Current price cap: | £1,862 a year |
Upcoming price cap: | To be announced on |
¹2,700 kilowatt hour (kWh) of electricity, 11,500kWh of gas. ⏎
What is the current price of gas and electricity per kWh?
Current price cap:
From the 1st of July to the 30th of September 2026, the price of electricity and gas per kWh for a customer with typical usage on a default tariff, paying by direct debit, will be:
Fuel | Price per kWh | Daily standing charge² |
|---|---|---|
Electricity | 26.11p | 57.19p |
Gas | 7.33p | 29.04p |
What does this mean for me?
If you have a smart meter:
Nothing, your smart meter automatically sends meter readings, so you don't have to worry about getting charged the wrong amount for your energy.
If you don't have a smart meter:
You should send a meter reading to your supplier on the day of, or the day before, the price cap changes. This way, you’re certain they charge you the right amount for your energy usage.
Smart meter owners don’t need to do this because readings are sent automatically.
Click here to request your smart meter today
2Standing charges are designed to cover the cost of supplying your property with energy. They are usually a fixed, daily amount which doesn’t vary. ⏎
For more information about the energy price cap, you can refer to Ofgem’s guide to the energy price cap.
Does this mean my energy costs are capped?
No, energy capping only limits the price of a unit cost of energy. The more units of energy you use, the more you will pay.
When will the price cap change again?
The price cap will change again on the 1st of October 2026. Ofgem will be announcing the actual price cap amount on August 26th, 2026.
How much will I pay for energy?
Energy usage can vary due to many factors, including:
The number of people in your home
The size of your home
How energy efficient your home is
How energy efficient your appliances are
If people in the home are energy-efficient
The amount you pay for energy can also vary due to location, payment method and what kind of energy meter you have.
How much could I pay to run household appliances?
The energy calculator below will show how the price cap change could affect the cost of using everyday household appliances. Simply update the drop down buttons with your estimated usage to see the costs.
The calculator below will show a cost estimate for the current price cap (July-Sept 2026), and compare that to the previous price cap (Apr-Jun 2026), and the price cap before that (Jan-Mar 2026). So you can see how your energy bills might have changed over time.
Please note: The electricity used by domestic appliances can vary depending on make and model, so we’ve used average power ratings. We have also used the price cap figures for a standard variable rate, so this calculator doesn't take into consideration any fixed tariffs or additional costs.
This calculator was updated to reflect the 01/07/2026 price cap.
How will the price cap increase affect my bills?
£40
Cost per month
Based on the current energy price cap
+£2
Compared to the previous price cap
(April to June 2026)
−£3
Compared to the price cap before the previous
(Jan to Mar 2026)
What is the average energy bill in the UK?
Ofgem’s calculation for an average or medium household is based on a 2-3 bedroom house, with 2-3 people living in it, using 11,500 kilowatt hours (kWh) of gas and 2,700 kWh of electricity a year.
They also estimate what low and high household usage is. Remember, these are average, estimated values, but they can help you get a general idea of how much energy you use, and what it might cost you.
Based on the current Ofgem calculations for energy usage, estimated annual costs for energy under the current April 2026 price cap could be:
Energy use | Typical annual electricity use (kWh) | Typical annual gas use (kWh) | Average annual cost* |
|---|---|---|---|
High (4+ bedroom house) | 4,100 | 17,000 | £2,471 |
Medium (2-3 bedroom house) | 2,700 | 11,500 | £1,641 |
Low (Flat or 1 bedroom house) | 1,800 | 7,500 | £1,271 |
*The average annual cost is an estimate based on the April 2026 price cap, for a dual-fuel customer paying by direct debit.
Based on figures from the BBC.
What is a kilowatt hour?
A kilowatt hour (kWh) is the standard unit used by energy suppliers to calculate your gas and electricity bill. When you hear energy companies talking about unit costs of energy this is usually referring to the kilowatt hour.
You can understand a kilowatt hour in terms of using 1000 watts of power (a kilowatt) in one hour of time. For example, you’d use 1-kilowatt hour of electricity to power a 100-watt halogen lightbulb for 10 hours, as 100 watts x 10 hours of use = 1000 watt-hours or 1 kWh.
If you swapped that halogen bulb for a more efficient LED bulb that uses 10 watts of electricity, you’d get 100 hours of light for the same 1-kilowatt hour of energy. 10 watts x 100 hours = 1000 watt-hours or 1 kWh.
The same principle applies to using gas too.
Who are Ofgem?
Ofgem is an organisation that regulates energy suppliers. It sets a maximum price that energy suppliers could charge for each unit of energy. The cap isn’t a cap on how much you spend on energy, it’s a cap on how much each unit of energy costs. The more energy you use; the more you’ll pay.
Are you struggling to pay your energy bills?
You can find out more about schemes and other help you might be eligible for here. Alongside this, we have advice available for those needing help with their energy bills.
For more information about the support available from the government including energy saving tips at the ‘Help for Households’ website.
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How to get a smart meter – three steps to help support Britain’s energy upgrade.