Calculate your energy bills using Ofgem's latest price cap rates (January - March 2026). Instant results with detailed breakdown.
Per year under January 2026 price cap
Typical annual dual fuel bill
Typical annual dual fuel bill (7.7% higher)
Typical annual dual fuel bill (2.7% lower)
The energy price cap is the maximum amount energy suppliers can charge you for each unit of energy (kWh) and the daily standing charge if you're on a standard variable tariff. It's set by Ofgem, the UK's energy regulator, and updated every 3 months (quarterly).
The price cap does NOT limit your total bill amount. If you use more energy, your bill will be higher regardless of the cap. The cap only restricts the price per kWh and daily standing charge - not your overall consumption costs.
From 1 January to 31 March 2026, the price cap is set at:
| Fuel Type | Unit Rate (p/kWh) | Standing Charge (p/day) | Change from Oct-Dec 2025 |
|---|---|---|---|
| ⚡ Electricity | 27.69p/kWh | 54.75p/day | +1.34p (5.1%) unit rate +1.07p (2.0%) standing |
| 🔥 Gas | 6.33p/kWh | 29.82p/day | -0.38p (-5.7%) unit rate -0.34p (-1.1%) standing |
| 💷 Typical Dual Fuel | £1,758/year (Direct Debit) | +£3 (+0.2%) | |
Ofgem calculates the price cap based on several cost factors that energy suppliers face:
When Ofgem quotes the price cap as £1,758/year, this is based on a household with "typical consumption" of:
Your actual bill will be higher or lower depending on your usage. A family of 4-5 may use 3,500-4,500 kWh electricity and 15,000-20,000 kWh gas. A single person may use 1,800 kWh electricity and 8,000 kWh gas.
The price cap protects approximately 28 million households (about 80% of UK homes) on standard variable tariffs or default tariffs. If you're on a fixed-rate tariff, the cap doesn't apply to you during your fix period - but it affects rates when your fix ends.
| Period | Typical Annual Bill (DD) | Change vs Previous |
|---|---|---|
| Jan - Mar 2024 | £1,928 | -5.3% |
| Apr - Jun 2024 | £1,690 | -12.3% |
| Jul - Sep 2024 | £1,568 | -7.2% |
| Oct - Dec 2024 | £1,717 | +9.5% |
| Jan - Mar 2025 | £1,738 | +1.2% |
| Apr - Jun 2025 | £1,690 | -2.8% |
| Jul - Sep 2025 | £1,568 | -7.2% |
| Oct - Dec 2025 | £1,755 | +11.9% |
| Jan - Mar 2026 (Current) | £1,758 | +0.2% |
The price cap varies by region due to different network costs across Great Britain's 14 distribution zones. Standing charges can differ by up to 20p/day between regions. The figures quoted (27.69p/kWh electricity, etc.) are England, Scotland, and Wales averages.
Ofgem is consulting on capping or reforming standing charges in 2026-27. Currently, standing charges range from 30-60p/day depending on region and supplier, adding £110-220/year to bills even if you use zero energy. Proposals include national caps or redistributing costs to unit rates.
You're not forced to accept the price cap. You can switch to a fixed-rate tariff where unit rates are locked for 1-2 years. This protects you if the cap rises but means you can't benefit if it falls.
As of January 2026: Some fixed tariffs are now cheaper than the price cap by £50-150/year. Worth comparing if you want price certainty. Use comparison sites like Uswitch, MoneySuperMarket, or Confused.com.
Ofgem will announce the next price cap in late February 2026, taking effect 1 April to 30 June 2026. Early forecasts suggest a possible 2-4% decrease due to falling wholesale gas prices, potentially lowering typical bills to £1,680-1,720/year.
No. The cap only applies to standard variable tariffs (SVTs) and default tariffs. Fixed-rate tariffs have their own agreed unit rates for the fixed period. However, when your fix ends, you'll be moved to an SVT at the capped rate.
The 0.2% increase (£1,755 → £1,758) was driven by higher electricity wholesale costs offset partially by lower gas costs. Geopolitical factors, reduced North Sea gas production, and winter demand patterns influenced pricing.
If you're on an SVT, your supplier must automatically apply the cap - you cannot be charged more. If you were overcharged, contact your supplier immediately for a refund. Ofgem can impose penalties on suppliers who breach the cap.
Yes. All quoted cap rates include 5% VAT on domestic energy. The £1,758 figure is the total you'd pay including VAT.