The energy price cap in 2026: how it works and what you pay
Ofgem resets the price cap every three months. Understanding what it does — and what it doesn't — helps you judge whether a fixed deal is worth it.
By Money Guide editorial team
Published:
The energy price cap, set by the regulator Ofgem, limits the unit rates and standing charges that suppliers can charge customers on a standard variable tariff in England, Wales and Scotland. Crucially, it caps rates, not your total bill: if you use more energy, you pay more. The widely quoted figure is for a 'typical' dual-fuel household paying by direct debit.
Ofgem updates the cap every three months (January, April, July and October). Through 2025 and 2026 the cap for a typical dual-fuel household paying by direct debit has hovered in the region of £1,700 a year, but the exact figure for each quarter is published by Ofgem ahead of the period — always check the current number there.
Because the cap moves quarterly, a competitive fixed deal can make sense if it sits below the prevailing cap and gives you certainty, while standard variable customers simply track the cap up and down. Prepayment and non-direct-debit customers face slightly different rates.
If you are struggling to pay, contact your supplier early: suppliers must offer affordable payment plans, and help such as the Warm Home Discount, Household Support Fund and supplier hardship grants may be available.