Launches · Energy |
Ofgem's price cap rose 13.5% to £1,862 a year on 1 July 2026, and suppliers responded with a wave of new fixed tariffs priced below it. The cheapest new fix, Outfox Energy's 24 month deal at around £1,546, undercuts the cap by roughly £316 a year for a typical dual fuel household.
Last reviewed: 10 July 2026
Key facts
- Price cap: £1,862 a year from 1 July 2026, a 13.5% rise, confirmed by Ofgem on 27 May
- Cheapest new fix: Outfox Energy 24 month at approximately £1,546, around £316 under the cap
- Cheapest big supplier fix: E.ON Next Fixed 12m v141 at approximately £1,649
- Octopus 12M Fixed v18: approximately £1,632 with no exit fees
- Only standard variable tariffs rose on 1 July; existing fixed deals are unaffected until they end
What changed on 1 July
Ofgem's price cap for the period 1 July to 30 September 2026 rose to £1,862 a year for a typical dual fuel household paying by direct debit, an increase of around £221 or 13.5% on the previous quarter. The rise was driven overwhelmingly by wholesale gas: gas unit rates climbed by roughly 24% while electricity rose by around 5%. The cap applies only to standard variable tariffs, so the roughly 40% of households already on fixed deals saw no change, but every household on a default tariff absorbed the increase from the first of the month. Combined standing charges now average about 86p per day, with electricity at 57.19p and gas at 29.04p.
The new fixed tariffs launched around the rise
Suppliers released a cluster of new fixed tariff versions in the weeks around the cap change, priced to sit visibly below the new £1,862 level. Outfox Energy's Fix'd Dual Jun26 24M v7, effective 18 June, prices at approximately £1,546 a year for typical use, the cheapest deal on the market and a saving of around £316 against the new cap, locked for two winters. Octopus Energy's 12M Fixed v18 prices at approximately £1,632, around £230 under the cap, with no exit fees, which leaves the customer free to leave if cheaper deals appear later in the year. E.ON's Next Fixed 12m v141, effective 30 June, is the most competitive new fix from a large supplier at approximately £1,649. So Energy's So Eagle 24m, effective 26 June, offers a two year green fix at approximately £1,676. All figures are annualised for Ofgem's typical consumption values and vary by region and usage.
| Tariff | Term | Typical annual cost | Saving vs £1,862 cap |
|---|---|---|---|
| Outfox Energy Fix'd Dual Jun26 24M v7 | 24 months | £1,546 | £316 |
| Octopus 12M Fixed v18 (no exit fees) | 12 months | £1,632 | £230 |
| E.ON Next Fixed 12m v141 | 12 months | £1,649 | £213 |
| So Energy So Eagle 24m | 24 months | £1,676 | £186 |
| Price cap (standard variable) | reviewed quarterly | £1,862 | – |
Annual costs use Ofgem typical domestic consumption values, dual fuel, monthly direct debit, averaged across regions. Actual bills depend on usage, region and meter type. Rates as published in supplier tariff information labels, June to July 2026.
Why the launches cluster around a cap rise
Fixed tariff pricing follows the wholesale forward curve rather than the cap itself, but cap changes are the moment households compare, so suppliers time new tariff versions to land beside the headline. A 13.5% cap rise creates the widest visible gap between variable and fixed pricing since early 2025, and the new tariffs are priced to advertise that gap. The structural detail worth recording is the exit fee position: the Octopus fix carries none, which converts a 12 month commitment into a one way bet for the customer, while most 24 month fixes carry exit fees that price in the supplier's risk of wholesale prices falling.
What sits underneath the annual figures
The annualised numbers compress two separate prices: unit rates and standing charges. A household with low consumption is affected proportionally more by standing charges, which the new fixes largely mirror from the cap, so the percentage saving shrinks as usage falls. Households with electric vehicles or heat pumps sit at the other extreme, where time of use tariffs rather than flat fixes define the market: overnight EV rates from around 7p per kWh compare with a capped variable electricity rate of 26.11p. The July tariff wave is therefore most relevant to the middle of the market: typical consumption, standard meters, and a preference for a known annual cost over tracking the daily wholesale price.
The cap trajectory from here
Ofgem reviews the cap quarterly and will publish the October level by late August. The June inflation print on 16 July and the Bank of England decision on 7 August feed wholesale expectations in between. Forward pricing at the start of July implied a broadly flat to modestly lower October cap, which is consistent with the new fixes pricing 10 to 17% below the current cap: suppliers are pricing for the year ahead, not the quarter. A record of each new tariff version, its effective date and its gap to the prevailing cap is maintained on the product launch tracker as versions are released.
Disclaimer: Kael Tripton is an independent publisher. This article is a factual record of a product launch, not a recommendation. Rates, prices and terms are verified at the date shown and may change at any time; always confirm directly with the provider before applying. Kael Tripton receives no commission from any provider named in this article.
Frequently asked questions
What is the energy price cap from 1 July 2026?
£1,862 a year for a typical dual fuel household paying by direct debit, a rise of around 13.5%. The cap limits unit rates and standing charges, not the total bill, so higher usage means a higher annual cost.
Which new fixed tariff is the cheapest against the cap?
Outfox Energy's 24 month fix at approximately £1,546 a year for typical use, around £316 below the new cap. It locks pricing for two winters.
Do existing fixed deals change when the cap rises?
No. The 1 July rise applies only to standard variable tariffs. Households on a fixed deal keep their agreed rates until the fix ends.
Why does the Octopus fix mention no exit fees?
Because it changes the risk balance. A fix without exit fees can be left at any time if cheaper tariffs launch later, while most fixed deals charge a fee for leaving early.
When is the next price cap announcement?
Ofgem publishes the October to December 2026 cap level by late August 2026. The cap is reviewed every three months.
Sources
Ofgem price cap · Octopus Energy tariff information · E.ON Next tariff information · So Energy tariff information. Verified 10 July 2026.
