The energy price cap is a limit set by Ofgem on the maximum amount energy suppliers can charge customers on default tariffs for each unit of energy and for the daily standing charge.
It protects customers on default tariffs from being charged above the cap level for unit rates and standing charges. It does not mean every household pays the same total bill.
It is not a maximum bill
The most important point is that the energy price cap is not a maximum total bill. If you use more energy, you still pay more.
The cap limits the price of each kWh and the daily fixed charges on default tariffs. Your total bill still depends on your actual gas and electricity use, region, payment method and tariff.
energy bill = kWh used × unit rate
+ daily standing charge × days
+ VAT and any other adjustments
Current energy price cap example
From 1 July to 30 September 2026, the Ofgem price cap is £1,862 per year for a typical dual-fuel household paying by Direct Debit. This is an illustrative typical household figure, not a guaranteed maximum bill.
£1,862/year
Typical Direct Debit dual-fuel household for 1 July to 30 September 2026.
Up 13%
Ofgem announced a 13% increase compared with the previous cap period.
Current average unit rates and standing charges
Ofgem’s national average Direct Debit rates for 1 July to 30 September 2026 are:
| Fuel | Unit rate | Standing charge |
|---|---|---|
| Electricity | 26.11p/kWh | 57.19p/day |
| Gas | 7.33p/kWh | 29.04p/day |
Actual rates can vary by region, payment method and meter type, so use the figures on your own bill when estimating costs.
Who does the price cap apply to?
The price cap applies to domestic customers on default tariffs, including standard variable tariffs. It does not automatically apply to every fixed tariff, because fixed tariffs have their own agreed rates for the contract period.
If you are on a fixed energy tariff, your rates are usually set by the tariff agreement rather than moving every time the default tariff cap changes.
How often does the energy price cap change?
Ofgem reviews and sets the price cap every three months. The cap periods normally start in January, April, July and October.
This means a household on a standard variable tariff can see rates change several times a year. It is one reason some households compare fixed tariffs with variable tariffs when prices are expected to rise.
Price cap, unit rate and standing charge
The cap covers both the unit rate and the standing charge. These two parts work differently.
| Part | Meaning | Can using less reduce it? |
|---|---|---|
| Unit rate | The price charged for each kWh used. | Yes, because using fewer kWh reduces usage cost. |
| Standing charge | The fixed daily charge on the tariff. | No, because it is charged daily regardless of usage. |
What should you do when the cap changes?
Start by checking whether your bill is based on actual readings, then compare your annual kWh usage with the new unit rates and standing charges. This gives a more useful answer than looking at the headline cap figure alone.
- Check whether your latest bill is estimated or actual.
- Find your annual electricity and gas kWh usage.
- Compare your current tariff unit rates and standing charges.
- Use a calculator to estimate annual cost under the new rates.
- Compare fixed tariff offers carefully, including exit fees.
FAQs
What is the energy price cap?
The energy price cap is the Ofgem limit on default tariff unit rates and standing charges.
Is the price cap a maximum bill?
No. Your bill can be higher or lower than the headline figure depending on how much energy you use.
Does the price cap apply to fixed tariffs?
Usually no. Fixed tariffs have agreed rates for the fixed contract period.
How often does the cap change?
Ofgem reviews and sets the price cap every three months.