How often does Ofgem review and change the energy price cap?

Full answer

The Ofgem energy price cap limits how much energy suppliers can charge customers on a default (standard variable) tariff per unit of gas and electricity, plus a daily standing charge, rather than capping total bills directly -- an actual bill still varies depending on how much energy a household uses. Ofgem reviews the cap every three months, with each new cap period running from the start of January, April, July and October. New cap levels are typically announced about four weeks before each period begins, giving suppliers and customers advance notice of the change, based on Ofgem's assessment of wholesale energy costs, network costs, policy costs and supplier operating costs over the preceding assessment window. For the April-June 2026 quarter, the cap set the annual bill for a typical household paying by direct debit for dual-fuel (gas and electricity combined) at £1,641, based on unit rates of 24.67p per kWh for electricity and 5.74p per kWh for gas, plus daily standing charges of 57.21p for electricity and 29.09p for gas. Because the cap moves quarterly, and largely tracks volatile wholesale gas and electricity prices, typical household bills can rise or fall noticeably from one quarter to the next -- unlike a fixed-rate energy tariff, where the price is locked in for the length of the contract regardless of what happens to the cap in between. The cap applies UK-wide to England, Scotland and Wales (Northern Ireland has a separate regulatory regime), and it applies specifically to default and standard variable tariffs -- fixed-term tariffs that suppliers offer are not directly bound by the cap level, though competitive pressure from the cap tends to influence how fixed tariffs are priced. Prepayment meter customers are covered by the same cap level as direct debit customers, following reforms that removed the previous premium prepayment customers used to pay compared with direct debit. Use the energy bill calculator to estimate your own costs under the current cap.

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More answers

• What is the standing charge in the Ofgem energy price cap and why do I pay it?
• What is a prepayment meter and does it cost more than paying by direct debit?