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Answer: The Ofgem energy price cap limits the unit rates and standing charges suppliers can charge on default (standard variable) tariffs in Great Britain. It does not cap your total bill using more energy still costs more. From 1 October to 31 December 2026 the typical Direct Debit dual-fuel level is about £1,723 a year.
Last updated: 11 September 2026 · Figures from Ofgem
Current price cap at a glance
- 1 July – 30 September 2026: about £1,663 a year for a typical Direct Debit dual-fuel household
- 1 October – 31 December 2026: about £1,723 a year (roughly 4% higher than the July–September level)
Ofgem presents these annual figures using updated typical consumption (around 2,500 kWh electricity and 9,500 kWh gas). Your bill will differ with usage, region, meter type and payment method.
Average Direct Debit unit rates (1 Oct – 31 Dec 2026)
- Electricity: about 26.32p/kWh · standing charge about 54.83p/day
- Gas: about 7.97p/kWh · standing charge about 29.68p/day
Averages across England, Scotland and Wales. Gas figures include VAT at 5%; electricity VAT treatment can differ in this period — check Ofgem’s tables for your payment method.
Who does the price cap protect?
You are covered if you are on a default / standard variable tariff. Fixed-rate deals sit outside the cap: your unit rates stay as contracted until the fix ends. Prepayment and standard-credit customers have their own capped rates, which can differ from Direct Debit.
Does the cap mean you should not switch?
Not necessarily. The cap is a safety net for default tariffs, not always the cheapest option. When competitive fixed deals undercut capped SVT rates after exit fees, switching can still save money. Compare using your real usage on our gas and electricity comparison or browse current offers.
Standing charges vs unit rates
Standing charges are daily fixed fees; unit rates are per kWh used. Both are capped on default tariffs. High standing charges hit low users harder; high unit rates hit high users harder — which is why personalised comparison beats a headline “typical bill”.
FAQs
Is the price cap my maximum bill?
No. It caps rates on default tariffs, not the total amount. Higher usage means a higher bill.
How often does the cap change?
Ofgem usually updates it every three months. The next announcements are scheduled around late November 2026 (for Jan–Mar 2027) and later quarterly dates on Ofgem’s site.
Do fixed deals follow the price cap?
No. Fixed tariffs use the rates you agreed. When the fix ends you often move to an SVT under the cap unless you choose a new deal.
Where can businesses check prices?
The domestic price cap does not set business energy prices. Use business energy comparison for commercial quotes.
Next step: How to switch · Cheapest energy deals · Compare on EnergySwitch
