Energy Price Cap Details

Last Updated: 09/01/2026

As of 1 January 2026, the Energy Price Cap increased slightly to £1,758 per year for a typical dual-fuel household paying by Direct Debit. That’s a 0.2% rise (£3 a year) compared to the previous cap of £1,755 that applied from October to December 2025.

Set by Ofgem, the Energy Price Cap limits what suppliers can charge per unit of gas and electricity, as well as daily standing charges, for households on standard variable (default) tariffs. It’s designed to stop customers being overcharged, but it does not cap your total bill. If you use more energy, you pay more, and if you use less, you pay less.

What’s Changed?

The current cap applies from 1 January to 31 March 2026. Below are the average rates for customers paying by Direct Debit. Actual rates vary slightly by region.

Electricity

Now (Jan–Mar 2026):

• Unit rate: 27.69p per kWh

• Standing charge: 54.75p per day

Gas

Now (Jan–Mar 2026):

• Unit rate: 5.93p per kWh

• Standing charge: 35.09p per day

Why has the cap changed?

While wholesale energy prices have been relatively stable, small increases in supplier costs and network charges have pushed the cap up slightly this quarter. The cap is reviewed every three months and reflects a range of costs, including wholesale prices, network costs, environmental levies, and supplier operating expenses.

Our expert says

“While wholesale energy prices have eased compared to last year, households are still seeing pressure on bills. From 1 January 2026, the Energy Price Cap has risen again, albeit slightly, showing just how sensitive prices remain to wider costs in the system. The good news is that many fixed tariffs are still coming in below the cap, offering households the chance to lock in savings and avoid further uncertainty. For anyone worried about prices heading into the rest of winter, now is a sensible time to check what deals are available." 

- Scott Byrom, Chief Executive Officer

When will the energy price cap change again?

What is the energy price cap?

The 'Energy Price Cap' is a legal requirement that energy suppliers must comply with in an attempt by Ofgem, the energy regulator, to protect households against unfair rises in gas and electricity costs and being overcharged for their home gas and electricity. The cap puts a limit in place on what suppliers can charge customers who are on either standard variable or default energy tariffs.

It is these tariffs that around 29 million of the UK remain on and are, in any normal time, amongst the most expensive forms of energy tariff with savings now available of around £160 below the new price cap level.

How do energy price caps work?

Price caps work by setting a limit on the rates a supplier can charge for each unit of gas and electricity. Many households are stuck on expensive default tariffs that they have fallen into after a fixed rate energy deal has expired, when they move in to a new property or if they have never switched their gas and electricity provider. With the cap in place, suppliers can only charge up to a set amount for their default energy tariffs, therefore apparently (as Ofgem claims) saving households money on their energy bills.

Your tariff details are on your energy bill. You can see if you are on a "Standard Variable" tariff or, if you switched to an energy supplier after another supplier went bust, a "Deemed Contract." If you are on a fixed-rate energy tariff, the cap will not apply to you until your energy tariff expires.

Even with the cap in place, this doesn't mean you won't end up paying more for your energy each year. Price caps are set at a unit price (the amount you pay for each kilowatt hour used) plus standing charges (the amount charged each day whether you use energy or not). With the cap being set by averaging out annual energy usage, if you use more energy than the medium Typical Domestic Consumption Values (TDCVs) - meaning "the average household", you will still be charged extra. Equally, if you use less, then your annual energy bill will be lower.

Price caps are also based on your region due to transportation costs and you could see higher rates if you don't pay by direct debit.

Why you should switch energy supplier

Usually, with the cap in place for standard variable or default tariffs, the best way to make big savings to your energy bills is to switch to a cheaper, more often "fixed", energy tariff. This could be with your existing energy supplier or moving to a new one altogether. As the price cap doesn't protect you from price fluctuations, it's generally best to consider a fixed rate plan to lock in your energy costs for a set period of time, e.g. 12-24 months.