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Energy Price Cap

The energy price cap limits the amount energy suppliers can charge you per unit of energy and standing charge.

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From 1 July 2026 the energy price cap will increase, putting average prices at £1,862 per year for a typical household. This is a 13% increase on the current average of £1,641 a year.

It’s important to know that the £1,862 figure doesn’t truly reflect just how expensive energy is at the moment. You’ll get a better idea of the increase by looking at how much a single unit of gas or electricity will cost from July (see below). For example, the cost of a unit of gas will go up from 5.74p to 7.33p, an increase of 27%. That’s twice the 13% increase of the average annual costs.

With the unit prices so high, it’s important to save as much energy as you can. Our Saving energy in the home section can get you started.

What is the energy price cap?

The price cap limits the cost of a unit of gas or electricity. It also limits the daily standing charge. Energy suppliers can’t charge you more than these limits.

Ofgem, the industry regulator, sets the price cap. They review it every three months.

What are the current standing charges and unit rates?

From 1 April 2026 – 30 June 2026, the price cap is £1,641 per year for a typical household – a reduction of 7% compared to the previous period.

From 1 April 2026 – 30 June 2026 the average prices are:

	Unit rate (per kWh)	Standing charge
Gas	5.74p	29.09p
Electricity	24.67p	57.21p

However, the actual standing charges and unit rates depend on:

Where you live in the UK
How you pay for your energy
What type of meter you have

What are the upcoming standing charges and unit rates?

From 1 July 2026 – 30 September 2026 the average prices will be set at £1,862 per year for a typical household – an increase of 13% on the current period:

	Unit rate (per kWh)	Standing charge
Gas	7.33p	29.04p
Electricity	26.11p	57.19p

Does the energy price cap apply to me?

The price cap applies to you if you’re on a variable tariff. These are also called ‘default’ or ‘standard’ tariffs. Your energy bill or online account should show you if you’re on this type of tariff.

If you’re on a fixed tariff, then the price cap doesn’t apply to you. You’ll pay the unit rate and standing charge that you signed up to. This might be less than the rates set by the cap, or it might be more.

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