UK Energy Price Cap: What It Actually Costs You
The energy price cap is not a cap on your bill. It limits the rates your supplier can charge — the price per unit of energy, and the daily standing charge — not the total you pay. Use more, and you pay more, however low the cap goes.
For 1 July to 30 September 2026, on a standard variable tariff paying by direct debit, the capped rates are:
At a glance
- Electricity
- 26.11p per kWh
- Electricity standing charge
- 57.19p a day
- Gas
- 7.33p per kWh
- Gas standing charge
- 29.04p a day
- Set by
- Ofgem, reviewed every 3 months
- This quarter
- Up 13%
⚡ Your bill at the cap · July 2026
| Where it goes | Rate | A year |
|---|---|---|
| Electricity used | 26.11p per kWh | £704.97 |
| Electricity standing charge | 57.19p a day | £208.74 |
| Gas used | 7.33p per kWh | £842.95 |
| Gas standing charge | 29.04p a day | £106.00 |
| Total | £1,862.66 | |
£314.74 of that is standing charges — 17% of your bill, payable before you use a single unit. You are charged it every day whether the house is occupied or empty, which is why cutting usage alone can never take a bill to zero.
Rates are Ofgem's cap for 1 July to 30 September 2026, the Great Britain average for direct debit, including VAT at 5%. Ofgem sets 14 regional caps, so your actual rates differ by a few pence either way depending where you live, and paying on receipt of a bill costs more than direct debit. The default usage figures are Ofgem's typical values (2700 kWh electricity, 11500 kWh gas) — put your own in from a recent bill for a figure that means something. Next review: October 2026.
What the cap actually limits
Ofgem caps two things for households on a standard variable tariff:
- The unit rate — what you pay for each kilowatt hour of gas or electricity you use.
- The standing charge — a fixed daily fee you pay regardless of usage, covering the cost of maintaining the network and your connection.
That is all of it. There is no limit on your total bill, because the total depends on how much you use. A large, poorly insulated house will pay several times what a small flat pays under exactly the same cap.
Two groups are not covered. If you are on a fixed tariff, your rates are whatever you agreed, and the cap does not apply until that deal ends. If you have a prepayment meter, a separate cap applies with slightly different rates.
The standing charge problem
Applying this quarter's rates to typical usage gives an annual bill of roughly £1,860. Around £315 of that is standing charges, payable before you use a single unit.
That figure is worth sitting with, because it is the part of the bill you cannot do anything about. Turning the heating down, insulating the loft, going away for a month — none of it touches the standing charge. You pay it every day the meter is connected.
It is also why "just use less" advice has a floor. For a household using very little energy — a small flat, someone away often, an empty property between tenants — standing charges can be most of the bill. Ofgem has consulted repeatedly on reforming them, and they remain one of the more contested parts of the system.
Why the cap changes every three months
The cap is recalculated quarterly, largely tracking wholesale energy prices — what suppliers pay for gas and electricity on international markets, bought months in advance. This quarter's 13% rise reflects higher wholesale gas prices.
That lag explains something that confuses people. News of falling gas prices does not cut your bill next month, because the cap reflects what suppliers already paid for energy they are about to sell you.
The next review takes effect in October 2026.
Fixing versus staying on the cap
There is no universally right answer here, and anyone who tells you otherwise is guessing about wholesale prices.
A fixed tariff makes sense when you value a predictable bill, or when suppliers are offering fixes below the current cap — which they will do if they expect wholesale prices to fall further than the cap has yet reflected.
Staying on the cap makes sense when fixes are priced above it, which usually signals that suppliers expect prices to rise. You also keep the benefit of any future cap reductions.
Two practical points. Check whether a fix has exit fees, because they remove your ability to move if the cap later drops below your fixed rate. And compare unit rates and standing charges, not headline annual estimates — those assume typical usage, and yours probably isn't typical.
Practical ways to cut the bill
- Submit a meter reading just before any cap change. Otherwise your supplier estimates the split between old and new rates, and estimates rarely fall in your favour.
- Check your direct debit against actual usage. Suppliers build up credit balances, and you can ask for a refund of anything beyond roughly one month's buffer. Our guide to being in debit on an energy account shows how to tell whether yours is set right.
- Target heating first. Heating and hot water dominate a typical bill, so a degree off the thermostat or a properly timed schedule moves the needle far more than switching things off at the wall.
- Check what you are entitled to. The Warm Home Discount, the Winter Fuel Payment and supplier hardship funds all exist, and take-up runs well below eligibility.
- Ask about the Priority Services Register if anyone in the house is elderly, disabled, or has a medical need for power. It is free, and it gives extra protection during outages.
If your supplier is threatening disconnection, or you simply cannot pay, contact them before it escalates. Suppliers must offer a payment plan you can realistically afford, and Citizens Advice and StepChange both give free help.
Frequently asked questions
What is the energy price cap right now?
For 1 July to 30 September 2026, the capped rates on a standard variable tariff paying by direct debit are 26.11p per kWh for electricity with a 57.19p daily standing charge, and 7.33p per kWh for gas with a 29.04p daily standing charge. These are Great Britain averages including VAT — Ofgem sets 14 regional caps either side of them.
Does the price cap limit my total bill?
No. It caps the rates, not the total. Your bill depends on how much energy you use, so two households under the same cap can pay very different amounts.
Why did my bill go up when the cap went down?
Usually usage or timing rather than rates. A cap cut in spring often coincides with a colder month than expected, or your supplier is recovering an accumulated debit balance. It can also mean your direct debit has been recalculated rather than your rates having risen.
Is a fixed tariff cheaper than the price cap?
Sometimes. Suppliers price fixes on what they expect wholesale prices to do, so a fix below the cap generally means they expect prices to fall. Compare unit rates and standing charges rather than headline annual figures, and check for exit fees.
Who is not covered by the price cap?
Anyone on a fixed-term tariff, for the length of that deal. Prepayment meters are covered by a separate cap with different rates. Business energy contracts are not capped at all.
When does the price cap change next?
October 2026. Ofgem reviews it quarterly and normally announces the new level several weeks before it takes effect.
General information, not financial advice. Rates are Ofgem's cap for 1 July to 30 September 2026 and change every three months — check Ofgem for the current figure if you are reading this later. Free debt and energy help is available from Citizens Advice and StepChange.
If you want to watch usage in real time, see whether you can get a monitor for your smart meter.
