Finance Editor, Kael Tripton Ltd - LBS MBA - Verified against FCA Handbook: 14 June 2026
Quick answer
The Ofgem energy price cap sets the maximum unit rate and standing charge suppliers can charge on default tariffs. It is reviewed quarterly. It does not cap your total bill -- you pay more if you use more. Fixed tariffs are not subject to the cap. Suppliers cannot legally charge above the cap rates.
What Is the Ofgem Energy Price Cap and Does It Apply to My Tariff?
Direct answer
What is the Ofgem price cap and does it apply to me?
The Ofgem price cap (ofgem.gov.uk/check-if-energy-price-cap-affects-you) sets the maximum unit rate and standing charge for domestic default tariffs in Great Britain. It applies if you are on a standard variable tariff or prepayment meter. It does not apply to fixed tariffs. It does not cap your total bill -- it caps the rate per unit, so high usage still leads to high bills.
FCA Handbook - Ofgem Supply Licence Condition SLC 28 - Verbatim Rule Text Source: handbook.fca.org.uk
A licensee must not impose charges on domestic customers in excess of the maximum charges set out in the standard conditions of gas/electricity supply licences (the price cap).
Find the current cap rate
Go to ofgem.gov.uk/check-if-energy-price-cap-affects-you to find the current unit rates and standing charges under the cap for your region.
Check your energy bill
Find the unit rate (pence per kWh) and daily standing charge on your bill or online account. Compare against the current cap rates.
If your supplier is charging above the cap
Contact the supplier in writing citing Ofgem's price cap. Request a corrected bill. Keep all correspondence.
If the supplier does not resolve it
Contact the Energy Ombudsman (energy-ombudsman.com) -- free for consumers. The ombudsman can require the supplier to correct the billing and pay compensation.
Compare tariffs against the cap
Fixed tariffs may be cheaper or more expensive than the cap depending on market conditions. Use a comparison site to check whether switching to a fixed rate makes sense.
Price Cap vs Fixed Tariff: Which Is Better?
| Feature | Price cap (default tariff) | Fixed tariff |
|---|---|---|
| Unit rate | Set at or below Ofgem cap | Fixed for contract term -- may be above or below cap |
| Bill certainty | Changes quarterly | Fixed for contract term |
| Flexibility | Leave anytime -- no exit fees | Early exit fees may apply |
| Protection if cap falls | Price falls with cap | Locked in at higher fixed rate |
| Protection if cap rises | Automatic cap protection | Fixed rate unchanged |
Related KT guides
Frequently Asked Questions
What is the Ofgem energy price cap?
The Ofgem energy price cap sets the maximum amount per unit (pence per kWh) and standing charge (pence per day) that energy suppliers can charge domestic customers on default tariffs (standard variable tariffs and prepayment meters) in Great Britain. It does not cap the total bill -- it caps the unit rate and standing charge. So customers who use more energy pay more, even under the cap. The cap is reviewed and updated quarterly by Ofgem using a methodology that factors in wholesale energy costs, network charges, environmental levies, supplier operating costs and a permitted profit margin.
How often does the Ofgem price cap change?
The Ofgem price cap is reviewed quarterly -- in January, April, July and October. Ofgem announces the new cap level typically 25 days before it takes effect. Suppliers are required to pass on the cap change to customers within the required timeframe. As of June 2026, the cap applies to approximately 26 million domestic electricity accounts and 22 million domestic gas accounts in Great Britain.
Does the price cap apply to fixed tariffs?
No. The Ofgem price cap only applies to default tariffs -- standard variable tariffs (SVTs) and prepayment meter rates. If you are on a fixed tariff, your rates are set by your contract with the supplier and are not subject to the cap during the fixed term. However, when your fixed tariff expires and you revert to the supplier's SVT, the cap applies from that point.
Can my energy supplier charge more than the Ofgem price cap?
No. Suppliers are legally prohibited from charging domestic customers on default tariffs more than the cap rate per unit or more than the cap standing charge per day. Any supplier found charging above the cap is in breach of its supply licence conditions and can face enforcement action by Ofgem including fines and licence revocation. If your bill appears to exceed the cap rates, check the unit rates on your bill against the current cap and contact your supplier.
What is the standing charge under the Ofgem price cap?
The standing charge is the fixed daily amount you pay for being connected to the energy network, regardless of how much energy you use. The Ofgem price cap sets a maximum standing charge (in pence per day) for electricity and gas separately. The standing charge has been a subject of regulatory debate as it disproportionately affects low-use customers. Ofgem has consulted on reforming the standing charge structure but as of June 2026 it remains within the scope of the quarterly cap.
Primary sources
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