The energy price cap in 2026: how it works and what you pay
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Ofgem resets the price cap every three months. From 1 July 2026 rates rise about 13% — understanding what the cap does helps you judge whether a fixed deal is worth it.
By Money Guide editorial team
Updated:
The energy price cap, set by the regulator Ofgem, limits the unit rates and standing charges that suppliers can charge customers on a standard variable tariff in England, Wales and Scotland. Crucially, it caps rates, not your total bill: if you use more energy, you pay more. The widely quoted figure is for a 'typical' dual-fuel household paying by direct debit.
Ofgem updates the cap every three months (January, April, July and October). For 1 July to 30 September 2026, unit rates and standing charges rise about 13% compared with the April–June period — reflecting wholesale gas costs during the regulator's February–May assessment window. Ofgem is also lowering its 'typical use' benchmark from 1 July, which changes headline bill figures without reducing the underlying rate increase.
Because the cap moves quarterly and lags wholesale markets, a competitive fixed deal can make sense if it sits below the prevailing cap and gives you certainty, while standard variable customers simply track the cap up and down. Prepayment and non-direct-debit customers face slightly different rates.
If you are struggling to pay, contact your supplier early: suppliers must offer affordable payment plans, and help such as the Warm Home Discount, Household Support Fund and supplier hardship grants may be available.