Answers · UK 2025/26

Why does the energy price cap change every quarter?

Ofgem reviews the price cap four times a year so it can track the changing wholesale cost of gas and electricity. For Q2 2026 the cap sets a typical dual-fuel direct debit bill at roughly £1,641 a year, but this is approximate and is reset every three months as market prices move.

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

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The energy price cap is set by the regulator Ofgem and is recalculated every quarter, taking effect in January, April, July and October. The reason for the regular changes is that the biggest part of your bill is the wholesale cost of buying gas and electricity, and those prices move constantly on global markets. By updating the cap every three months, Ofgem aims to make sure suppliers can cover their genuine costs without overcharging customers. For the second quarter of 2026 the cap is set so that a household with typical consumption paying by direct debit faces a bill of around £1,641 a year for dual fuel. This is only an illustrative figure for average use of about 11,500 kWh of gas and 2,700 kWh of electricity a year. The cap does not limit your total bill: it caps the unit rates and the standing charge, so if you use more energy you pay more. For Q2 2026 the approximate capped rates are about 24.67p per kWh for electricity and 5.74p per kWh for gas, plus daily standing charges, though these vary by region and change each quarter. Because the cap is a maximum and changes so often, it is worth comparing fixed tariffs, which can lock in a rate for 12 months and protect you from rises, although you may pay more if the cap later falls. Standing charges are paid even if you use no energy, so low users feel them most. Use an energy bill calculator to estimate your annual cost from your own meter readings rather than relying on the typical-use headline figure.