Changes to energy price cap between 1 April and 30 June 2026
- Publication type:
- News
- Publication date:
- Topic:
- Energy pricing rules
- Subtopic:
- Energy price cap
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Changes to the maximum amount energy suppliers can charge people on default tariffs for each unit of energy and the daily standing charge.
Every 3 months we review and set a level for how much an energy supplier can charge for each unit of energy and daily standing charge, under the price cap.
From 1 April to 30 June 2026 energy prices will go down by £117 or 7% for a typical household who use electricity and gas and pay by Direct Debit. These households will save around £10 a month.
Compared to the level between April and June 2025, it is 11% or £208 lower.
The annual cost for people who use electricity and gas and pay by Direct Debit would be £1,641 per year.
Energy price cap rates 1 April and 30 June 2026
Electricity rates
If you are on a standard variable tariff (default tariff) and pay for your electricity by Direct Debit, you will pay on average 24.67 pence per kilowatt hour (kWh). The daily standing charge is 57.21 pence per day. This is based on the average across England, Scotland and Wales and includes VAT at 5%.
Gas rates
If you are on a standard variable tariff (default tariff) and pay for your gas by Direct Debit, you will pay on average 5.74 pence per kilowatt hour (kWh). The daily standing charge is 29.09 pence per day. This is based on the average across England, Scotland and Wales and includes VAT at 5%.
Why energy prices are changing
The UK government recently announced that the funding for 2 environmental and social schemes will either end or be funded through general taxes from April 2026. Due to this change, customers will save an average of £150.
From April 2026, costs related to the Warm Home Discount will change from standing charges to the unit rate. Over the last 3 months, global wholesale energy prices have also gone down by £38 a year.
Network costs have increased by £66 a year because of the current price control framework (RIIO-3). The framework focuses on investment in upgrading energy infrastructure such as power and gas grids to help keep bills more stable in the future.
Costs included in the energy price cap
The level of the energy price cap is made up of different costs, for example the wholesale cost of gas and electricity, costs to supply energy on the network and VAT. These costs are split within the energy price cap between the unit rate and the standing charge.
We recently consulted on costs related to the Warm Home Discount scheme and its impact on how the cap is calculated. View all our latest consultations and decisions related to the energy price cap.
View and compare 1 April to 30 June 2026 and 1 January to 31 March 2026 energy price cap standing charges and unit rates by region.
Read about the costs that make up the standing charge for electricity and gas.
You can also get and compare all the energy price cap (default tariff) levels.
Read about typical household energy use and how the energy price cap is calculated on our Average gas and electricity usage page.
Managing your energy bills and tariff
You are covered by the energy price cap if you are on a default tariff and pay for your electricity and gas by:
- standard credit (payment made when you get your electricity and gas bill)
- Direct Debit
- prepayment meter
- Economy 7 (E7) meter
The actual amount you pay will depend on how much energy your household uses, where you live and the type of meter you have.
You could pay less for your energy by changing your energy tariff or payment type. Find out if you can change or fix your tariff and how to switch energy supplier.
Tell your energy supplier if you cannot pay your bills. They must help you if you ask. They could set up a repayment plan or provide you with emergency credit.
What we are doing to help customers
We are introducing a lower standing charge tariff pilot which will start in April and last one year. The trial will give customers more choice, especially those who use less energy.
Customers who are with EDF, E.ON, Octopus and British Gas will be offered the new tariff if they meet the requirements.
Next energy price cap review
We review and set a level on how much an energy supplier can charge for each unit of energy including the standing charge every 3 months. The levels for the period 1 July to 30 September 2026 will be published by 27 May 2026. We may publish before this date if we need to because of external reasons.