At a glance
Here’s the latest on the energy price cap in a nutshell:
From 1 July to 30 September 2026, the energy price cap is set at £1,862 per year on average for a typical-usage household paying by direct debit.
The price cap will rise by 4% from 1 October to 31 December 2026
The price cap applies to most people on standard and variable tariffs.
Help is available if you are struggling to pay your energy bills. Talk to your supplier first.
What is the energy price cap?
The energy price cap is a mechanism introduced by the government in 2019 to protect consumers from "loyalty penalties" and ensure fair pricing for energy.
It limits the amount energy companies can charge customers who are on default tariffs, including standard variable tariffs (SVTs), prepayment meters, and Economy 7 meters.
The price cap rate sets a limit on the maximum amount suppliers can charge for each unit of gas and electricity, as well as the daily standing charge which is set by the UK’s energy regulator Ofgem.
From 1 July to 30 September 2026, the energy price cap is set at £1,862 per year on average for a typical usage household paying by direct debit.
You are covered by the price cap if you pay for your electricity and gas by either:
Standard credit (payment made when you get your electricity and gas bill)
Direct Debit
Prepayment meter
Economy 7 (E7) meter.
Is £1,862 the maximum I have to pay?
No, the energy price cap isn't a limit on how much you’ll pay in total. Your total bill depends on:
How much energy you use
Where you live
How you pay for your energy.
What is capped is the amount you pay for each unit of gas or electricity you use. If you use more than the average, based on a typical dual-fuel household paying by direct debit, you’ll pay more.
One thing to note is that if you pay by cheque, cash or bank transfer when you get your bill, you could pay less by switching to direct debit.
What is the standing charge on my energy bill?
The standing charge is a fixed daily fee you pay regardless of how much energy you actually use.
You can see details of standing charges by region on the Ofgem website.
How do I know if I’m on a default tariff?
You’re likely to be on a default tariff if you haven’t switched energy suppliers before or you’ve automatically rolled on to the standard variable rate after your fixed-rate tariff came to an end.
You’re also likely to be on the standard tariff if your supplier stopped trading and you were switched to a new supplier.
Check your bill to see which tariff you are on, or ask your supplier if you are not sure.
When will the energy price cap next change?
The Ofgem price cap changes every three months.
From 1 October to 31 December, it will rise by 4%, adding £5 a month on to typical bills.
What can I do if I’m struggling to pay my energy bill?
High energy prices, alongside general rises in the cost of living, are making it difficult for many people to afford to pay their bills. But help is available.
First, you should talk to your supplier. They must discuss payment plans and tell you what support is available.
There are also charitable schemes you can apply to for help. Get details of where to apply and more in our guide: What to do if you can’t afford your energy bills.
Government support is also available. See Help with energy bills: available grants and schemes to make sure you claim everything you’re entitled to.
Using less energy
Another way to keep your bills in check is to use less power if you can. See these sources of help for making your home more energy efficient:
Looking for something else?
Over the past decade, Kate has worked in various industries, including company secretarial, small business support and property investing.
Her move to financial services in 2022 not only helped her find her niche in personal finance writing, but also just how alienating finance can be. She’s now motivated by making everyday money a piece of cake for everyone, helping her readers feel informed and in control.
Kate now specialises in savings and current accounts as well as broadband, mobile and energy products.
Stephen Maunder is an experienced personal finance editor, having spent more than a decade working for consumer print and online titles. He won several industry awards for his personal finance features at Which?, before becoming Deputy Editor at Compare the Market.
Dan is focused on helping people and businesses get the right deal for their energy in a volatile market. For more than 20 years, he has been introducing, developing and managing product propositions across a variety of industries, including energy, insurance and banking, all to get the right outcome for customers.
Our content is written by a Compare the Market expert, backed by data and enhanced by technology. Find out how we ensure accuracy and quality in our Editorial Guidelines.
What our expert says...
"With energy bills set to rise again in October, now is a good time to review your tariff and compare new deals.
"Recent market changes have led many households to look for more certainty over their energy costs. A fixed tariff can help by locking in your rates for the length of your contract, making bills more predictable, budgeting easier, and protecting you from rising costs.
"If you're already on a fixed deal that's ending soon, it's particularly important to shop around for a new one. Doing nothing could mean moving onto a variable tariff and being exposed to future price increases."