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Energy guide

Energy price cap guide

The energy price cap is one of the most misunderstood household-bill numbers in the UK. It caps unit rates and standing charges for default tariffs. It does not cap the total bill you can receive.

Current contextApril to June 2026 cap
Unit ratesNot a total bill cap
Usage matterskWh drives the bill
Source backedOfgem and Citizens Advice
Plain English

What the cap actually means

It caps prices, not your total bill

The cap limits what suppliers can charge per kWh and standing charge on standard variable/default tariffs. Use more energy and the bill still rises.

The headline is a typical household

Ofgem uses typical consumption values to turn unit prices into a headline annual figure. Your home may be lower or higher.

It is reviewed every three months

A variable tariff can move when the cap changes. A fixed tariff can protect against rises but can also miss falls.

Standing charges matter

Standing charges apply even before usage. A low unit rate with a high standing charge is not always cheaper for low-use households.

Current cap

1 April to 30 June 2026

Ofgem says the cap is GBP 1,641 per year for a typical dual-fuel household paying by Direct Debit. The previous January to March 2026 figure was GBP 1,758. Treat the headline as a comparison marker, not your personal forecast.

Your actionWhy it matters
Find annual kWh on your billUsage is the core comparison input.
Compare unit rates and standing chargesMonthly payments can hide the real tariff.
Check exit fees and end dateA small saving can vanish if the exit fee is large.
Check support before switching if in arrearsDebt, prepay and vulnerability rules change the decision.
Sources

Sources and useful links