The Ofgem energy price cap for 1 July to 30 September 2026 is £1,862 a year for a typical dual-fuel household paying by Direct Debit - a confirmed 13% rise (£221) from the April 2026 cap of £1,641. Ofgem confirmed the figure on 27 May 2026. The rise is driven by higher wholesale gas prices following disruption to global LNG supply routes after the Strait of Hormuz closure from late February 2026. Around 33 million accounts on standard variable tariffs are affected. The 22 million accounts on fixed-rate tariffs are not.
The cap limits the maximum unit rate and daily standing charge. It does not cap your total bill - actual costs depend on consumption. Use the calculator below to estimate your own bill.
Energy price cap by quarter: 2021 to 2026
Gold bar = current July 2026 confirmed cap. Red/orange = crisis-period Ofgem cap levels (households paid less under the Energy Price Guarantee). Source: Ofgem quarterly cap announcements.
* Q4 2022 to Q2 2023: Ofgem cap was £3,549 / £4,279 / £3,280 but the Energy Price Guarantee (EPG) limited what households actually paid to ~£2,500. Chart shows EPG-subsidised bill for those periods.
Calculate your energy bill: July 2026 rates
Enter your actual annual energy use (find it on a recent bill or your smart meter app). The calculator uses Ofgem's confirmed July 2026 unit rates.
Based on confirmed Ofgem July 2026 rates: electricity 26.11p/kWh + 57.19p/day standing charge; gas 7.33p/kWh + 29.04p/day standing charge. National average, includes VAT at 5%. Regional rates vary.
Confirmed unit rates from 1 July 2026
National averages, Direct Debit, England Scotland and Wales, VAT at 5% included. Source: Ofgem, 27 May 2026.
| Fuel | Apr-Jun 2026 | Jul-Sep 2026 | Change | Standing charge/day |
|---|---|---|---|---|
| Electricity | 24.67p | 26.11p | +6% | 57.19p |
| Gas | 5.74p | 7.33p | +28% | 29.04p |
Bill by payment method (July 2026)
| How you pay | Typical annual bill | vs monthly DD |
|---|---|---|
| Monthly Direct Debit | £1,862 | - |
| Prepayment meter | £1,812 | £50 less |
| Standard credit (cash/cheque/quarterly) | £2,005 | £143 more |
Switching to monthly Direct Debit with your current supplier saves £143/year with no supplier change required.
Full quarterly history: every Ofgem price cap 2019 to 2026
Complete Ofgem cap record. Oct 2022 to Jun 2023 households paid under the EPG (shown in the Actual bill column). Sources: Ofgem quarterly announcements; gov.uk EPG records.
| Period | Ofgem cap | Actual paid | Change |
|---|---|---|---|
| Jan 2019 | £1,137 | £1,137 | launch |
| Apr 2019 | £1,254 | £1,254 | +10% |
| Oct 2019 | £1,179 | £1,179 | -6% |
| Apr 2020 | £1,126 | £1,126 | -4% |
| Oct 2020 | £1,042 | £1,042 | -7% |
| Apr 2021 | £1,138 | £1,138 | +9% |
| Oct 2021 | £1,277 | £1,277 | +12% |
| Apr 2022 | £1,971 | £1,971 | +54% |
| Oct 2022 * | £3,549 | £2,500 EPG | +80% cap |
| Jan 2023 * | £4,279 | £2,500 EPG | peak |
| Apr 2023 * | £3,280 | £3,000 EPG | EPG ends Jun |
| Jul 2023 | £2,074 | £2,074 | -37% |
| Oct 2023 | £1,928 | £1,928 | -7% |
| Jan 2024 | £1,928 | £1,928 | flat |
| Apr 2024 | £1,690 | £1,690 | -12% |
| Jul 2024 | £1,568 | £1,568 | -7% |
| Oct 2024 | £1,717 | £1,717 | +10% |
| Jan 2025 | £1,738 | £1,738 | +1% |
| Apr 2025 | £1,849 | £1,849 | +6% |
| Jul 2025 | £1,717 | £1,717 | -7% |
| Oct 2025 | £1,755 | £1,755 | +2% |
| Jan 2026 | £1,758 | £1,758 | flat |
| Apr 2026 | £1,641 | £1,641 | -7% |
| Jul 2026 (live) | £1,862 | £1,862 | +13% |
| Oct 2026 (forecast) | ~£1,849 | TBC 26 Aug | ~-1% |
* EPG period: Oct 2022 to Jun 2023. Ofgem cap was higher but households paid the EPG-subsidised amount. The July 2026 cap of £1,862 is 64% above the January 2019 launch level of £1,137.
Why the cap rose 13% in July 2026
| Driver | What happened |
|---|---|
| Wholesale gas +28% | US and Israeli strikes on Iran from 28 Feb 2026 closed the Strait of Hormuz, cutting ~20% of global LNG supply. European wholesale gas prices surged at their fastest rate since the 2022 Ukraine war |
| Network costs up | RIIO-3 regulatory period added ~£65/year to network charges from April 2026, partially offsetting the green levy removal |
| TDCV update | Ofgem updated typical household consumption values (now 2,700 kWh electricity, 11,500 kWh gas) to reflect lower average home usage, altering unit rate calculations |
Ofgem calculates the Q3 cap using wholesale prices observed in the window 18 February to 17 May 2026. The conflict impact was fully captured in this window, locking in the majority of the rise regardless of subsequent market movements.
October 2026 energy price cap: what to expect
Cornwall Insight forecast (1 July 2026): ~£1,849/year - a 0.5% fall on July's £1,862. The US-Iran ceasefire has eased near-term pressure but the October cap window (19 May to 18 Aug 2026) is still open and will shift if the ceasefire breaks down.
| Scenario | October cap estimate |
|---|---|
| Ceasefire holds, markets calm | ~£1,750-£1,800 |
| Current trajectory (Cornwall Insight base) | ~£1,849 |
| Ceasefire breaks, Hormuz re-closes | £2,000+ |
Ofgem must confirm the October to December 2026 cap by 26 August 2026. All October figures are forecasts until then. The October bill lands as heating season begins and will have a larger practical impact than July's cap despite the similar level.
Cut your bill: what you can do now
| Action | Saving |
|---|---|
| Switch to monthly Direct Debit with current supplier | £143/yr |
| Smart meter weekend tariffs - off-peak electricity from several suppliers | up to £100/yr |
| Warm Home Discount - eligible low-income households | £150 credit |
| Winter Fuel Payment - Pension Credit recipients only | £200-300 |
| Can't pay - contact your supplier. Ofgem requires repayment plans for all who ask | tailored plan |
Related guides
Frequently asked questions
What is the energy price cap for July 2026?
Ofgem confirmed on 27 May 2026 that the energy price cap for 1 July to 30 September 2026 is £1,862 per year for a typical dual-fuel household paying by monthly Direct Debit - a 13% rise (£221) from the April 2026 cap of £1,641.
What is the average energy bill in the UK in 2026?
From 1 July 2026, the average energy bill for a typical dual-fuel household on the Ofgem price cap, paying by Direct Debit, is £1,862 a year (£155/month). This assumes 2,700 kWh electricity and 11,500 kWh gas per year. Smaller homes typically pay £1,100-1,400; larger homes £2,400-2,700.
What are the electricity and gas unit rates from July 2026?
From 1 July 2026 the confirmed Ofgem price cap rates are: electricity 26.11p/kWh (standing charge 57.19p/day) and gas 7.33p/kWh (standing charge 29.04p/day). These are national averages for Direct Debit customers including VAT at 5%. Regional rates vary - check ofgem.gov.uk for your area.
Why did energy prices go up in July 2026?
The 13% rise is primarily driven by higher wholesale gas prices following the closure of the Strait of Hormuz during the Middle East conflict from late February 2026. Around 20% of global oil and gas supply passes through this waterway. Ofgem's Q3 observation window (18 February to 17 May 2026) captured the full impact of the supply disruption.
What is the energy price cap forecast for October 2026?
Cornwall Insight's revised forecast published 1 July 2026 puts the October to December 2026 cap at approximately £1,849/year - a 0.5% fall on July, reflecting some wholesale market stabilisation following a US-Iran ceasefire. Ofgem confirms the October cap by 26 August 2026. All October figures are forecasts until then.
Does the energy price cap limit my total bill?
No. The cap limits the maximum unit rate per kWh and the maximum daily standing charge. Your total bill depends on how much energy you consume. Use more than the Ofgem typical consumption (2,700 kWh electricity, 11,500 kWh gas per year) and your bill will exceed £1,862.
Am I affected by the July 2026 price cap rise?
Only if you are on a standard variable tariff (SVT). Around 33 million household accounts are on SVTs and face the higher rates from 1 July 2026. The approximately 22 million accounts on fixed-rate tariffs are not affected until their deal ends.
How can I reduce my energy bill from July 2026?
The fastest no-cost action is switching to monthly Direct Debit with your current supplier - this saves £143/year versus standard credit with no supplier change needed. Smart meter customers should check for weekend off-peak tariffs. If you cannot pay, contact your supplier: Ofgem requires all suppliers to offer tailored repayment plans to any customer who requests one.
When is the next energy price cap change after July 2026?
Ofgem will confirm the October to December 2026 cap by 26 August 2026. The January to March 2027 cap follows by 25 November 2026, and the April to June 2027 cap by 23 February 2027.
Sources
- Ofgem, energy price cap will rise 13% from July, press release, 27 May 2026
- Ofgem, changes to energy price cap between 1 July and 30 September 2026 (confirmed unit rates)
- Ofgem, energy price cap unit rates and standing charges, updated 1 July 2026
- Cornwall Insight, energy bills set to rise in July as forecasts warn October could be worse, 27 May 2026
- Cornwall Insight, household energy costs look set to remain high through winter, 1 July 2026 (October revised forecast £1,849)
- gov.uk, Warm Home Discount, Winter Fuel Payment, Cold Weather Payment schemes
- Ofgem quarterly cap announcements and electricityprices.org.uk for historical data 2019-2025
