Glossary · UK
What is Ofgem Price Cap?
The maximum default tariff energy suppliers can charge most UK households.
Full Definition
The Ofgem Default Tariff Cap limits the unit rate and standing charge that energy suppliers can charge customers on standard (default) tariffs. It's reviewed quarterly (January, April, July, October). The cap covers ~28 million UK households on standard variable tariffs. For Q2 2025, the typical annual bill for a dual-fuel direct debit household sits around £1,738. The cap does NOT limit your total bill — it caps unit rates, so high usage means a high bill regardless. Fixed-rate tariffs are not capped.
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Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.