Ofgem cuts energy price cap by 7% for summer quarter
The cap on default tariffs falls for July to September, with typical dual-fuel bills dropping by around £130 a year.
By Money Guide editorial team
Published:
Ofgem confirmed a 7% reduction in its energy price cap for the third quarter of 2026, taking the typical annual bill for a household paying by direct debit on a default tariff to around £1,640.
The cut reflects easing wholesale gas prices and lower network costs. Unit rates and standing charges both fell, although the standing charge — currently around 60p a day for electricity — continues to attract complaints from low-use households.
The cap is a per-unit and per-day cap, not a total bill cap. A household using more energy than the typical level will pay proportionally more; one using less will pay less. Fixed tariffs are now available from a handful of suppliers at prices broadly in line with or slightly below the cap.
Ofgem's longer-term reform agenda includes a possible 'zonal' wholesale electricity market and changes to the way network costs are recovered from bills, although no immediate change is expected for households this year.