The energy price cap rises 13% from 1 July 2026
Ofgem confirmed on 27 May 2026 that the energy price cap rises 13% for the three months from 1 July to 30 September 2026. For a household with typical usage paying by direct debit for both electricity and gas, that sets the benchmark annual figure at £1,862, around £214 more than the spring cap. Here is what the cap actually controls, where that £1,862 goes, why it went up, and what you can do.
What the price cap actually is
The cap is often described as if it were a maximum bill. It is not. Ofgem caps the unit rate you pay per kilowatt-hour and the daily standing charge on the default, standard variable tariff that most households sit on if they have never switched or have let a fixed deal lapse. It does not cap your total bill: use more energy and you pay more, with no upper limit. It does not apply to fixed tariffs, which can be priced above or below it. And it covers England, Scotland and Wales, not Northern Ireland, which has a separate market. Ofgem resets the cap every three months, so it moves with the wholesale market rather than holding for a year.
The new rates
Averaged across regions and including VAT at 5%, a standard variable direct-debit customer pays:
| Charge | Spring 2026 | From 1 July 2026 |
|---|---|---|
| Electricity unit rate | ~24.5p per kWh | 26.11p per kWh |
| Electricity standing charge | ~53p per day | 57.19p per day |
| Gas unit rate | ~6.3p per kWh | 7.33p per kWh |
| Gas standing charge | ~27p per day | 29.04p per day |
The spring figures are approximate, shown for comparison. Your own rates vary by region and payment method, and the gas unit rate rise (about 16%) is steeper than electricity this quarter.
Where your £1,862 goes
The headline assumes typical use of about 2,700 kWh of electricity and 11,500 kWh of gas a year. On the new rates it splits almost evenly between the two fuels:
| Component | Cost per year |
|---|---|
| Electricity usage (2,700 kWh × 26.11p) | ~£705 |
| Electricity standing charge (365 × 57.19p) | ~£209 |
| Gas usage (11,500 kWh × 7.33p) | ~£843 |
| Gas standing charge (365 × 29.04p) | ~£106 |
| Total | ~£1,862 |
One number stands out: the two standing charges together come to about 86p a day, roughly £315 a year, before you use a single unit of energy. That fixed floor is why cutting usage helps but cannot get a bill near zero, and it is the part that hits low-usage homes hardest.
Why it went up 13%
The biggest driver is the wholesale price of gas, which still sets the price of electricity for much of the day because gas plants are often the last ones switched on to meet demand. When wholesale gas climbs, both fuels follow, with a lag of a few months built into how Ofgem calculates the cap. The rest of the bill is network costs (maintaining the pipes and wires, recovered mostly through the standing charge) and government policy levies that fund social and environmental schemes. The supplier's own margin is a small, separately capped slice.
It is not the same for everyone
Two households on the capped tariff can pay different rates. The cap is set per region across the 14 distribution areas, so standing charges in particular differ by where you live. Payment method matters too: direct debit is the cheapest, while standard credit (paying on receipt of a bill) and prepayment are set at different levels. Ofgem also updated its assumed typical-usage figures from July 2026, which shifts the headline pound figure even where unit rates barely move, so the cleanest way to compare any deal is on the unit rate and standing charge, not the annual headline.
What you can do
The cap is a ceiling, not the cheapest option, so it is worth acting rather than sitting on it:
- Consider fixing: a fixed tariff locks today's rates for the term and removes the risk of the next rise, usually for a small premium and an exit fee if you leave early.
- Or track the market: a wholesale tracker tends to be cheaper over a year if you can ride the swings. The trade-offs of each are in our fixed vs tracker vs variable guide.
- Cut the usage you can: draught-proofing, insulation and turning down a gas boiler's flow temperature chip away at the variable part of the bill, the part the cap does not shield.
- Check your direct debit: set too high, it builds credit the supplier holds; too low, it builds debt. Submit a meter reading and review it against your actual use.
Whatever you choose, weigh the supplier as well as the rate: a cheap deal from a supplier with poor service can cost you in hassle. The supplier rankings score suppliers on service, fairness and more, and the energy bill optimiser models your own usage.
If you are struggling to pay
Contact your supplier first. Under Ofgem rules they must offer a payment plan you can realistically afford and cannot simply refuse to help. Ask to be added to the free Priority Services Register if you or someone in your home is in a vulnerable situation, and check whether you qualify for support such as the Warm Home Discount or a supplier hardship fund. The Citizens Advice consumer service gives free, independent help, and if a supplier treats you unfairly there is a clear route in our guide on what to do if you have a complaint.
What happens next
The £1,862 cap runs to 30 September 2026. Ofgem confirms the October to December level on 26 August 2026, and current forecasts point to a further small rise just as the heating season starts. We break down the outlook, and the typical-usage change that muddies the headline, in Ofgem price cap: what the rest of 2026 could bring.