Changes to energy price cap between 1 January and 31 March 2026

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 January to 31 March 2026 there will be a small monthly increase of 28 pence on the price of energy for a typical household who use electricity and gas and pay by Direct Debit.

Compared to the level between January and March 2025, it is 1% or £20 higher.  

Year on year when adjusted for inflation the new cap is 2% or £37 lower than the same period in 2025.    

The annual cost for people who use electricity and gas and pay by Direct Debit would be £1,758 per year (0.2%).    

Energy price cap rates 1 January to 31 March 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 27.69 pence per kilowatt hour (kWh). The daily standing charge is 54.75 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 5.93 pence per kilowatt hour (kWh). The daily standing charge is 35.09 pence per day. This is based on the average across England, Scotland and Wales and includes VAT at 5%.

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.

View and compare 1 January to 31 March 2026 and 1 October to 31 December 2025 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.

We consulted on some of these costs which could impact future energy prices in August. View all our latest consultations and call for inputs related to the price cap.

Read about typical household energy use and how the energy price cap is calculated on our Average gas and electricity use explained 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 either:

• 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 have set out plans to change how debt is managed in the system through a Debt Relief Scheme. When the scheme launches in early 2026, it aims to support around 195,000 people who claim means-tested benefits.   

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 April 2026 to 30 June 2026 will be published by 25 February 2026. We may publish before this date if we need to because of external reasons.