Last reviewed: 30 June 2026
TL;DR: Ofgem's energy price cap rises 13% from 1 July 2026, to £1,862 a year for a typical dual-fuel household paying by Direct Debit. Submitting a meter reading on or around 30 June ensures usage before the rise is billed at the lower rate. Only standard variable tariffs are affected; fixed deals are unchanged until they end.
Ofgem confirmed on 27 May 2026 that the energy price cap will rise by 13 percent for the period covering 1 July to 30 September 2026, taking the typical annual dual-fuel bill for a Direct Debit customer to £1,862, up £221 from £1,641.
Why the increase is happening
Ofgem attributes the rise mainly to higher wholesale gas prices, linked to the ongoing conflict in the Middle East. Gas unit rates are increasing by around 24 percent this quarter, compared with roughly 5 percent on electricity. Prices remain below the peak of the 2022 energy crisis, when government intervention capped typical bills at £2,500.
Who is affected
The increase applies only to standard variable (price-capped) tariffs. Around 40 percent of domestic accounts are on fixed-rate deals and are unaffected until those deals end. Of the roughly 33 million Standard Variable Tariff accounts, about 19 million pay by Direct Debit, 7 million by standard credit, and 6 million use prepayment meters, each facing a different annual total under the new cap.
Why a meter reading matters before 1 July
Customers without a smart meter sending automatic readings are advised to submit a manual reading on or around 30 June. Doing so ensures energy used before the price change is billed at the rate in force up to 30 June, rather than being estimated and potentially billed at the higher rate that applies from 1 July.
Direct Debit customers do not need to change their payment amount themselves. Suppliers review Direct Debit levels and contact customers if an adjustment is needed to reflect the new cap. Prepayment customers will see the new unit rates apply from their first top-up on or after 1 July 2026.
What this means for the rest of the year
The energy price cap is reviewed quarterly. The next review, covering 1 October to 31 December 2026, is due to be published by 26 August 2026. Ofgem also updated its Typical Domestic Consumption Values for this review, reflecting that households are now using around 7 percent less electricity and 17 percent less gas than the figures previously used to calculate the typical bill.
KEY FACTS
- New price cap: £1,862 a year typical dual-fuel, Direct Debit, from 1 July to 30 September 2026
- Increase: 13% (+£221) versus the April to June 2026 cap of £1,641
- Gas unit rates up around 24%; electricity up around 5% this quarter
- Only standard variable tariffs change; roughly 40% of accounts on fixed deals are unaffected
- Next cap review covers 1 October to 31 December 2026, due by 26 August 2026
RELATED GUIDES
This article is for general information only and does not constitute financial advice. Energy prices and individual bills vary by region, meter type and supplier. Kael Tripton Ltd is not authorised or regulated by the Financial Conduct Authority. Check current rates directly with Ofgem or your supplier before making decisions.
Frequently asked questions
When does the new energy price cap take effect?
The new cap applies from 1 July 2026 and runs until 30 September 2026, when Ofgem reviews it again.
Do I need to submit a meter reading before 1 July?
If you do not have a smart meter sending automatic readings, submitting a reading around 30 June helps ensure your usage before the price change is billed at the correct, lower rate.
Will my fixed-rate tariff change on 1 July?
No. Fixed-rate tariffs are unaffected by the price cap change. Rates stay the same until the fixed deal ends.
How much is the typical annual bill from 1 July 2026?
£1,862 a year for a typical dual-fuel household on Direct Debit, based on Ofgem's updated typical consumption values.
Sources
Ofgem, changes to the energy price cap between 1 July and 30 September 2026
Ofgem, energy price cap and standing charges explained
