Energy price cap (typical household)

Source: Ofgem, series Default tariff cap: typical annual dual fuel bill, Direct Debit, Great Britain average. Ofgem sets the cap every three months and announces each level before the quarter begins; the level for 1 October to 31 December 2026 was announced on 26 August 2026. No machine-readable feed; unit rates and standing charges by region are on Ofgem's unit rates page

What it measures

The energy price cap is the maximum amount suppliers in England, Scotland and Wales can charge per unit of gas and electricity, and for the daily standing charge, on standard variable (default) tariffs. Ofgem converts it into a typical annual bill using typical domestic consumption values, so the headline figure shows what a household using a typical amount of both fuels and paying by Direct Debit would pay. It does not limit a household's total bill: someone who uses more energy pays more. Fixed tariffs, business contracts, heat networks and heating oil are not covered, and Northern Ireland has a separate regulator.

How to read it

The typical bill depends on the consumption values Ofgem assumes, and Ofgem has revised them, so compare like with like when a cap changes: Ofgem said the October 2026 cap would equal £1,935 on its older 2023 consumption values. Unit rates and standing charges vary by region and payment method. To check what a claim about 'energy bills' means, ask whether it is the typical bill, a unit rate or an actual average bill. For the effect on inflation, the ONS includes energy in CPI.

Background

The default tariff cap was introduced on 1 January 2019 under the Domestic Gas and Electricity (Tariff Cap) Act 2018. It was originally changed every six months and has been set quarterly since October 2022. During winter 2022 to 2023 the Government's separate Energy Price Guarantee scheme also limited unit prices, and GOV.UK publishes the payments made under it. For 1 October to 31 December 2026 Ofgem set the typical dual fuel bill at £1,723 a year, up 4% (£60) from £1,663.

Other parts of the UK

Ofgem: energy price cap unit rates and standing charges by region · Utility Regulator (Northern Ireland, which is outside the Ofgem cap)

What is the energy price cap now?

From 1 October to 31 December 2026 the cap means a typical household paying by Direct Debit for gas and electricity pays £1,723 a year, Ofgem announced on 26 August 2026. That is 4%, or £60 a year, more than the previous quarter's £1,663.

Does the price cap limit my total energy bill?

No. It limits the unit rates and standing charges on standard variable tariffs, not the total bill. A household using more than the typical amount pays more than the headline figure, and one using less pays less.

When does the energy price cap change?

Ofgem sets a new cap every three months, taking effect on 1 January, 1 April, 1 July and 1 October. It announces each level in advance of the quarter; the October 2026 level was announced on 26 August 2026.

Does the price cap apply to businesses or Northern Ireland?

No. The cap covers domestic standard variable tariffs in England, Scotland and Wales. Business energy contracts are not capped, and Northern Ireland's energy prices are overseen by the Utility Regulator.

Is the price cap the same for gas and electricity?

There are separate caps on gas and electricity unit rates and standing charges. Ofgem combines them into a typical dual fuel bill for its headline figure. The rates for each fuel, by region and payment method, are on Ofgem's unit rates page.

Related questions

• What is the energy price cap?
• How is the energy price cap calculated?
• How many households are in fuel poverty?
• What is the current UK inflation rate?

More on this source: Department for Energy Security and Net Zero (DESNZ) energy and emissions statistics, and Ofgem energy price cap data