The energy price cap is the maximum amount suppliers in Great Britain can charge per unit of electricity and gas (plus standing charges) for a typical household on a default tariff, as set quarterly by Ofgem. This page tracks the current cap, the most recent change, and what it means in pounds per year.
Current cap
For the period 1 April to 30 June 2026, the Ofgem energy price cap is set at £1,641 per year for a typical household using a medium amount of gas and electricity and paying by Direct Debit.
- Previous cap (1 Jan to 31 Mar 2026): £1,758
- Change: -6.6%, or approximately £117 per year / £10 per month for a typical household.
The cap applies to standard variable tariffs (SVTs), not to fixed-price deals customers have signed up for.
How the cap actually works
The cap is not a cap on your total bill. It is a cap on unit rates and standing charges. Your total bill is the sum of:
- Electricity: standing charge per day + unit rate per kWh used
- Gas: standing charge per day + unit rate per kWh used
Higher users therefore save more in absolute terms when the cap falls, because the unit rate has been cut across more kWh consumed.
Why it moves
Ofgem re-sets the cap every three months to reflect the underlying wholesale cost of gas and electricity, network charges, and policy costs. The main drivers this cycle were falling wholesale prices and policy changes including the removal of the Energy Company Obligation (ECO) levy from bills and the move of certain 'green levies' to general taxation.
Green levies and additional savings
From April 2026, the UK government expects the average household to save up to £150 per year from the combined price cap cut and the shifting of energy policy costs (ECO, green levies) away from bills and onto general taxation.
What to do
If you are on a standard variable tariff and not on a fix, the new cap applies automatically from 1 April 2026. Check your latest bill against the new unit rates to make sure your supplier is applying the change correctly.
If you are on a fixed tariff, the cap does not apply to you. Compare your fixed rate against the new cap to decide whether to run down your fix or switch.