The energy price cap explained
Last updated . Figures refresh every night. How each figure is worked out.
From 1 October to 31 December 2026 the Ofgem price cap is £1,723 a year for a household with typical consumption paying by direct debit. It caps unit rates and standing charges, not your total bill: electricity at 26.32p a kWh plus 54.83p a day, and gas at 7.97p a kWh plus 29.68p a day. Use more and you pay more. Figures from Ofgem, checked by hand on 22 September 2026.
Figure as of 22 September 2026. Source: Ofgem.
What are the current unit rates and standing charges?
Figure as of 22 September 2026. Source: Ofgem. Checked by hand 22 September 2026.
Figure as of 22 September 2026. Source: Ofgem. Checked by hand 22 September 2026.
Figure as of 22 September 2026. Source: Ofgem. Checked by hand 22 September 2026.
Figure as of 22 September 2026. Source: Ofgem. Checked by hand 22 September 2026.
Figure as of 22 September 2026. Source: Ofgem. Checked by hand 22 September 2026.
Standing charges vary by region; these are the national averages Ofgem publishes. VAT on domestic electricity is zero from 1 October 2026 to 31 March 2027; gas stays at 5%.
What does the price cap actually cap?
It caps the maximum a supplier can charge per unit of energy and per day as a standing charge, on a standard variable tariff. It does not cap your bill. The headline £1,723 figure is what a household using a typical amount would pay over a year at those rates; use more energy and you pay more.
You are not protected by the cap if you are on a fixed tariff, and Ofgem resets the cap every three months. Ofgem reduced its definition of typical use in July 2026, so cap levels before and after that change are not directly comparable.
How has the price cap changed?
The numbers behind this chart
| Quarter | Cap | Paid under the guarantee |
|---|---|---|
| Oct 21 | £1,277 | — |
| Apr 22 | £1,971 | — |
| Oct 22 | £3,549 | £2,500 |
| Apr 23 | £3,280 | £2,500 |
| Jul 23 | £2,074 | — |
| Oct 23 | £1,834 | — |
| Jan 24 | £1,928 | — |
| Apr 24 | £1,690 | — |
| Jul 24 | £1,568 | — |
| Oct 24 | £1,717 | — |
| Jan 25 | £1,738 | — |
| Apr 25 | £1,849 | — |
| Jul 25 | £1,720 | — |
| Oct 25 | £1,755 | — |
| Jan 26 | £1,758 | — |
| Apr 26 | £1,641 | — |
| Jul 26 | £1,862 | — |
| Oct 26 | £1,935 | — |
Figure as of 22 September 2026. Source: Ofgem.
Annualised typical bill, direct debit. The 2026 Q3 and Q4 points use the pre-July-2026 typical-use basis (£1,862 and £1,935) so the line stays comparable. Earlier figures are approximate.
What does the capped price pay for?
Wholesale energy is the largest single part. Tax and policy levies are about £165 of the £1,663 typical bill, 10% of it. How much of my energy bill is tax breaks this down in full.
The numbers behind this chart
| Part of the bill | What it pays for | Per year | Share |
|---|---|---|---|
| Wholesale energy | The gas and electricity your supplier buys | £700 | 42% |
| Networks | Pipes, cables, pylons, the grid operator keeping supply and demand balanced, and grid upgrades | £380 | 23% |
| Operating, debt and industry | Billing, smart meters, bad debt, costs of failed suppliers | £365 | 22% |
| Policy costs | Levies funding renewables support, the Warm Home Discount and similar schemes | £85 | 5% |
| VAT | 5% on the total (gas and, until October, electricity) | £80 | 5% |
| Supplier margin | Capped earnings allowance | £40 | 2.5% |
Figure as of 22 September 2026. Source: Ofgem.
What about prepayment meters?
| Tariff | Electricity per kWh | Electricity standing charge | Gas per kWh | Gas standing charge |
|---|---|---|---|---|
| Direct debit | 26.32p | 54.83p | 7.97p | 29.68p |
| Prepayment meter | 26.11p | 57.19p | 7.33p | 29.04p |
Prepayment rates are set separately by Ofgem and published alongside the direct debit rates. Standing charges also vary by region; these are the national averages.
Common questions
- What is the energy price cap now?
- £1,723 a year for a typical dual-fuel household paying by direct debit, from 1 October to 31 December 2026.
- Does the price cap cap my bill?
- No. It caps the unit rate and the daily standing charge. The headline figure is what a household using a typical amount of energy would pay; use more and you pay more.
- What is the electricity unit rate under the cap?
- 26.32p a kWh plus a standing charge of 54.83p a day, on average across regions.
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Sources for this page
| Source | Publisher | Figures as of | Updated |
|---|---|---|---|
| Ofgem, energy price cap unit rates and standing charges | Ofgem | 22 September 2026 | quarterly |