Gas and electricity prices UK:
current rates and what comes next
The Q2 2026 cap is £1,641 per year for a typical household. A rise is forecast for July. Here are the current rates, the cap history, and what the forecast means for your bills.
The current Ofgem price cap is £1,641 per year for a typical dual-fuel household (Q2 2026, 1 April to 30 June). Electricity costs 24.67p per kWh and gas 5.74p per kWh. The Q3 2026 cap is forecast to rise by around 13% to approximately £1,850, driven by rising wholesale gas prices. The Q3 cap was announced by Ofgem on 27 May 2026.
Current gas and electricity prices UK: Q2 2026
| Rate | Q1 2026 (Jan to Mar) | Q2 2026 (Apr to Jun) | Change |
|---|---|---|---|
| Electricity unit rate | 27.69p/kWh | 24.67p/kWh | Down 3.02p |
| Electricity standing charge | 54.75p/day | 57.21p/day | Up 2.46p |
| Gas unit rate | 5.93p/kWh | 5.74p/kWh | Down 0.19p |
| Gas standing charge | 35.09p/day | 29.09p/day | Down 6.00p |
| Typical annual bill | £1,758 | £1,641 | Down £117 (7%) |
Figures 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.
Gas and electricity price forecast: Q3 2026 and beyond
A rise of around 13% is forecast by energy analysts for the July cap, based on rising wholesale gas prices. This would add approximately £209 to the typical annual bill compared to the current Q2 level. The Q3 cap was confirmed by Ofgem on 27 May 2026.
Beyond Q3, forecasts carry significant uncertainty as wholesale prices can shift rapidly. The cap is reviewed quarterly based on actual wholesale market movements. For most households, the most reliable protection against future cap rises is locking into a fixed deal before the July increase.
Q3 2026 forecast based on analysis from Cornwall Insight, an energy market consultancy. Forecasts are not guaranteed. Actual cap levels are set by Ofgem and may differ from predictions. Last updated May 2026.
Why are UK energy prices still high in 2026?
UK gas and electricity prices remain significantly above their pre-2021 levels. The current Q2 2026 cap of £1,641 is still around 44% higher than the cap in winter 2021/22, before the energy crisis began. At its peak in early 2023, the cap reached over £4,000 per year before government intervention.
The underlying cause is the UK's reliance on global wholesale gas markets. Because gas is also used to generate a significant portion of UK electricity, gas prices heavily influence electricity prices too. UK electricity prices are among the highest in Europe as a result. Any geopolitical event affecting global gas supply or demand — such as those that drove the original crisis — can feed quickly into the cap.
The cap protects households on standard variable tariffs from being charged above Ofgem's permitted rates, but it does not protect against the cap itself rising. The most reliable protection for households is switching to a fixed deal before a forecast cap rise takes effect. See our energy tariff comparison guide and our fixed tariff guide for more.
Fix before the July price rise
Compare fixed deals available for your postcode. A fix at or below the current cap protects against the July increase.
Questions people ask
Q2 2026 (April to June): electricity 24.67p per kWh, standing charge 57.21p per day; gas 5.74p per kWh, standing charge 29.09p per day. The typical annual dual-fuel bill at these rates is £1,641. Rates are England, Scotland and Wales averages for direct debit customers including VAT. Actual rates vary by region.
Yes, a rise is forecast. Energy analysts predict the Q3 2026 cap will rise by around 13% to approximately £1,850 per year, driven by rising wholesale gas prices. The Q3 cap was confirmed by Ofgem on 27 May 2026.
The Ofgem energy price cap limits the maximum unit rate and standing charge suppliers can charge on standard variable tariffs. It does not cap your total bill. The cap is reviewed every January, April, July and October. The current cap is £1,641 per year for a typical household in Q2 2026.
UK energy prices remain around 44% higher than in winter 2021/22 because of the lasting impact of the 2021 to 2023 energy crisis, which was driven by global gas market volatility. UK electricity prices are also tied closely to gas prices because gas generates a large share of UK electricity.
Related energy guides
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