Energy price cap UK:
what it is and what it actually means for your bill
The price cap does not cap your total bill. It caps the price per unit. Here is what that means for what you actually pay — and how to pay less than the cap.
The energy price cap sets the maximum unit rate and standing charge suppliers can charge on standard variable tariffs. It does not cap your total bill. The cap is currently £1,641 per year for a typical dual-fuel household in Q2 2026 (1 April to 30 June). It is reviewed every quarter. The Q3 2026 cap is forecast to rise. You can pay less than the cap by switching to a competitive fixed deal.
What the energy price cap actually covers
Q2 2026 price cap rates (1 April to 30 June 2026)
| Rate | Electricity | Gas |
|---|---|---|
| Unit rate | 24.67p per kWh | 5.74p per kWh |
| Daily standing charge | 57.21p per day | 29.09p per day |
| Annual standing charge cost | £208.82 | £106.18 |
| Typical annual usage (Ofgem TDCV) | 2,700 kWh | 11,500 kWh |
| Typical annual usage cost | £665.09 | £660.10 |
| Typical total annual bill | £1,641 (dual fuel) | |
Rates are England, Scotland and Wales averages for direct debit customers including 5% VAT. Actual rates vary by region, meter type and payment method. Source: Ofgem. Last updated May 2026.
Can I pay less than the energy price cap?
Yes. The price cap is the maximum rate on a standard variable tariff — it is not the best available deal. Competitive fixed deals can be priced below the cap and offer a lower unit rate for households that switch. The cap protects you from being overcharged on a default tariff, but it does not stop cheaper deals existing in the market.
The Q3 2026 cap is forecast to rise. If a fixed deal is available at or below the current Q2 cap rate, switching now locks your rate before the July increase takes effect. Comparing by postcode is the only way to know what fixed deals are available for your specific home and usage level. See our energy tariff comparison guide to understand what to look for, or use our energy bill calculator to check what you should be paying at current rates.
Find a deal below the cap
Compare fixed deals available for your postcode. The cap is not the cheapest option.
Questions people ask
The energy price cap is the maximum unit rate and standing charge that energy suppliers can charge on standard variable tariffs. It is set by Ofgem and reviewed every January, April, July and October. It does not cap your total bill — it caps the price per unit. Use more energy and you pay more, even under the cap.
The Q2 2026 cap (1 April to 30 June 2026) is set at £1,641 per year for a typical dual-fuel household paying by direct debit, based on 2,700 kWh of electricity and 11,500 kWh of gas. Electricity is capped at 24.67p per kWh and gas at 5.74p per kWh. A rise is forecast for Q3 2026 (July).
The cap applies to around 19 million households on standard variable tariffs. It does not apply to fixed-rate deals. Prepayment meter customers have a separate cap, set at £1,597 for Q2 2026.
Yes. The cap is the maximum on a default variable tariff, not the best available deal. Competitive fixed deals can be priced below the cap. Comparing by postcode is the only way to see what is available for your home. The cap is the worst permitted rate on a default tariff, not the cheapest option.
Related energy guides
Find a deal below the cap
The cap is the worst permitted rate. Compare what is available for your postcode.
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