The latest energy price cap figure covers the period from 1st July 2026 to 30th September 2026 and will mean the average dual-fuel household will pay roughly £18.50 per month more for their energy. The increase is primarily being driven by rising wholesale gas prices connected to the ongoing conflict in the Middle East.
Although the overall cap is increasing, the changes affect gas and electricity differently. Customers will see a smaller increase of around 5% on their electricity unit rates, compared to a steeper 27% rise in gas unit rates.
Tim Jarvis, Director General of Markets at Ofgem, said "Today's price change reflects continued volatility in global energy markets. This means higher wholesale gas prices, driven by ongoing conflict in the Middle East, is impacting the price we pay for energy".
He added "We understand many will be concerned about rising prices. While energy use typically falls over the summer months, there are still practical steps households can take to manage costs, including exploring fixed tariffs or changing their payment method. Smart meter customers can also take advantage of half price or cheap electricity at the weekends".
What is the energy price cap
The energy price cap is set by the UK's independent energy regulator, Ofgem, to protect consumers from excessively high energy bills. It limits the maximum amount that energy suppliers can charge per kilowatt-hour (kWh) of gas and electricity, as well as the daily standing charge. The price cap applies only to households on standard variable or default tariffs, and not to fixed energy tariffs. Importantly, the cap is based on the average dual-fuel household bill, so the amount you actually pay will vary depending on how much energy you use.
Why has the energy price cap been increased?
The energy price cap is heavily influenced by the cost of wholesale energy, which is the price suppliers pay to buy gas and electricity from the open market. When these wholesale costs rise, the increase is eventually passed on to consumers.
The 13% increase announced for July is primarily driven by a recent surge in wholesale gas prices. This rise is largely linked to ongoing geopolitical tensions and conflict in the Middle East, which have caused instability and uncertainty in global energy supply chains. Because the UK still relies heavily on gas to generate electricity, these international market movements directly impact household bills.
Although it is unusual for energy prices to rise during the summer months when demand is typically lower, the global nature of energy supply means that international events can quickly disrupt the prices we pay in the UK. To provide some context, it means that the price we will pay for our energy come July will be around the same price we were paying back in April 2025.
Energy price cap figures 2024-2026
Below, we provide a brief history of the energy price cap figures going back to January 2024.
| Date Energy Price Cap is effective from | Energy Price Cap |
| 1st January 2024 | £1,928 |
| 1st April 2024 | £1,690 |
| 1st July 2024 | £1,568 |
| 1st October 2024 | £1,717 |
| 1st January 2025 | £1,738 |
| 1st April 2025 | £1,849 |
| 1st July 2025 | £1,720 |
| 1st October 2025 | £1,755 |
| 1st January 2026 | £1,758 |
| 1st April 2026 | £1,641 |
| 1st July 2026 | £1,862 |
Energy price cap history
The graph below shows the fluctuations in the energy price cap since January 2024 and also provides the latest prediction for the energy price cap for October 2026.
How much will I pay for energy under the new price cap?
The following table shows how much you can expect to pay for each unit of gas and electricity from 1st July 2026. The figures will vary depending on where you live in the UK. Remember, the amount you pay under the new price cap will be based on your energy usage and the charges stated below, assuming you pay by direct debit.
| Current energy price per unit
(1st April - 30th June 2026) |
New energy price per unit
(1st July - 30th September 2026) |
|
| Electricity | Daily Standing charge: 57.21p
Unit price per kWh: 24.67p |
Daily Standing charge: 57.19p
Unit price per kWh: 26.11p |
| Gas | Daily Standing charge: 29.09p
Unit price per kWh: 5.74p |
Daily Standing charge: 29.04p
Unit price per kWh: 7.33p |
(Source: Ofgem)
Future energy price cap predictions
Major energy suppliers now provide energy price cap forecasts that stretch as far as early 2027. Current long-range forecasts from major suppliers suggest minor increases after the July 2026 increase, but with a low level of confidence.
| Source | Predicted Annual Cost from October 2026 | Predicted Annual Cost from January 2027 | Predicted Annual Cost from April 2027 |
Date of Forecast |
| British Gas | £1,945 | £1,955 | £1,940 | 19th May 2026 |
| E.ON Next | £1,923 | £1,935 | £1,922 | 27th May 2026 |
| EDF | £1,903 | £1,912 | £1,890 | 27th May 2026 |
How will the energy price cap be calculated in the future?
Alongside the new price cap announcement, Ofgem has confirmed that it will update its definition of an 'average household' from July 2026. This metric is known as the Typical Domestic Consumption Values (TDCV) and it essentially estimates how much gas and electricity a typical home uses in a year.
Because households have steadily reduced their energy consumption, the baseline used to calculate the annual price cap figure is being lowered. People are typically using less energy now due to improved home energy efficiency, milder weather, and a conscious effort to cut down following recent high prices.
While this change means the headline average bill figure will appear lower in future Ofgem announcements, it does not mean energy itself is getting cheaper. The price cap sets the maximum cost for the daily standing charge and the unit rate of energy, not your total bill. Ultimately, what you actually pay will still be entirely dependent on how much energy you consume. We have provided a summary of both the existing and new typical consumption levels below, along with how they impact the energy price cap figures going forward.
Current typical consumption values (used prior to 1st July 2026)
- Electricity: 2,700 kWh/year
- Gas: 11,500 kWh/year
New typical consumption values (used from 1st July 2026)
- Electricity: 2,500 kWh/year
- Gas: 9,500 kWh/year
Energy price cap figures based on new typical consumption levels
| Price Cap - April to June 2026 | Price Cap - July to September 2026 | Predicted price Cap - July to September 2026 | |
| Annual bill (based on current typical consumption levels) | £1,641 | £1,862 | £1,903 |
| Annual Bill (based on new typical consumption levels) | £1,490 | £1,663 | £1,713 |
Is now the time to fix your energy tariff?
The recent cut to the energy price cap complicates the decision of whether now is the right time to fix your energy tariff. When prices were consistently rising, fixing offered protection against further increases, but with lower variable rates from April now confirmed, the decision is less straightforward. Ultimately, the best course of action depends on your individual circumstances, usage patterns, and tolerance for risk. We discuss this in more detail in our article 'Should I fix my energy prices?'.
What if you can't afford to pay your energy bill?
With even higher bills from July, energy bills are now around £600 more than they were in October 2021. If you find you are struggling to pay your energy bills, there are a number of things you can do:
- Contact your energy supplier - Notifying your energy supplier that you are struggling to pay your energy bills means that they are obliged to help you find an affordable way to repay them.
- Check for grants and schemes - Contact your energy supplier and ask if you are eligible for any of their grants or schemes on offer.
- Pay your bills via your benefits - If you receive certain benefits, such as Universal Credit or Income Support, you may be able to come to an agreement with your supplier for your debts to be repaid directly from your benefits.
Check out the full article 'What to do if you're struggling to pay your energy bills' for more information.
Help if you're struggling to pay your energy bill
You may be able to clear your debt with your energy supplier via the Fuel Direct Scheme if you receive benefits. Alternatively, you may be able to get help with grants and schemes offered by your energy supplier or with the British Gas Energy Trust, which offers support for customers of all energy companies. For more information on the schemes available, visit the Citizen's Advice website.
Finally, there are a number of charities and organisations that can provide free financial advice. We've provided links to a selection of the best websites below:
- MoneyHelper (previously the Money Advice Service)
- The money charity
- StepChange
- National Debtline
- Turn2us
- Citizens Advice
- Payplan
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