Answers · UK 2025/26

How is my energy bill calculated from the price cap?

Your bill is the units of energy you use multiplied by the capped unit rates, plus a daily standing charge for each fuel. For Q2 2026 unit rates are approximately 24.67p per kWh for electricity and 5.74p per kWh for gas. The cap limits the rates, not your total bill, so heavier users pay more.

Last updated: 7 June 2026Last reviewed: 7 June 2026How we verify

Full answer

The energy price cap does not set a ceiling on what you pay overall. Instead it caps two things: the unit rate, which is the price per kilowatt hour of gas or electricity you use, and the standing charge, which is a fixed daily fee for being connected to the network. Your bill is then simply the energy you actually consume multiplied by those unit rates, plus the standing charges for each day of the period. For the second quarter of 2026 the approximate capped unit rates are around 24.67p per kWh for electricity and 5.74p per kWh for gas, with daily standing charges on top that vary by region. These figures are approximate and Ofgem resets them every quarter. As an example, if you use 250 kWh of electricity in a month you pay roughly 250 multiplied by 24.67p, about £61.68, plus around 30 days of standing charge. Gas is cheaper per unit but homes heated by gas use far more kilowatt hours, so the gas portion of a bill in winter is often larger than electricity. The widely quoted figure of around £1,641 a year is only for a household with typical or average usage; your own bill depends entirely on how much you use, how well insulated your home is and how you heat it. Paying by direct debit is usually cheaper than paying on receipt of bill or using a prepayment meter. Reading your meter regularly stops your supplier estimating and lets you see exactly what you are spending. Use an energy bill calculator with your real meter readings to work out your personal annual cost instead of relying on the typical-use figure.