The energy price cap is going up from July – here’s what you need to know:

From July to September 2026, the independent energy regulator, Ofgem, is making a change to the energy price cap – increasing by 13%. That works out at around £18 more per month, or around £221 more per year for most households. 

What is the energy price cap?

The price cap is the maximum amount your energy supplier can charge you for each unit of gas and electricity. It also affects your daily standing charge - that’s the fixed fee you pay each day, even if you don’t use much energy. 

If you’re on a standard variable tariff, the cap applies to you - whether you pay by direct debit, standing credit, a prepayment meter, or an Economy 7 meter (the one with cheaper night rates). 

Why is the price cap going up?

There are a few reasons for this including higher government costs - the main reason being the conflict in the Middle East. As well as this, there’s increased gas network expenses and lower energy demand - which means the fixed costs of running the system are spread across fewer users making the cost per unit go up. 

The price cap is there to make sure energy prices stay fair and reasonable for customers. 

Tips to keep your bills down

The Energy Saving Trust shares plenty of tips and advice on how you can bring your energy bills down. Here’s five useful steps: 

1. Reducing your energy use: Small changes that can save you hundreds of pounds on your energy bills.  

2. Using energy efficient products: Upgrading your appliances to keep your costs down.  

3. Reducing heat loss in your home: Keep your home warm by stopping heat escaping needlessly.  

4. Getting energy efficient heating: Swapping your heating system to have more control over how you heat your home.  

5. Taking advantage of renewable and low carbon technologies: Harnessing free energy from the sun, wind and water, and using low carbon technology to make your home more energy efficient.