When will energy unit rates change after an Ofgem review?

Ofgem reviews the energy price cap every quarter and sets the new cap-level unit rates and standing charges. The next change lands on 1 July 2026, when the cap rises 13% to £1,862. This guide explains the cap cycle, the UK timings, and what to expect on fixed vs variable deals.

  • The cap is reviewed quarterly and changes on 1 January, 1 April, 1 July and 1 October
  • Most standard variable tariffs change on the day the new cap starts (next: 1 July 2026)
  • Fixed tariffs usually don’t change until your fix ends (unless your contract says otherwise)
Get your energy quote How unit rates change

Guide for UK households (not business energy). Cap rates apply to typical direct-debit use and vary by region, meter type and payment method.

Fast answer: when your unit rates change after Ofgem’s review

In Great Britain, Ofgem reviews and sets the energy price cap every quarter. The new cap (and the cap-level unit rates and standing charges) takes effect on the first day of the quarter — 1 January, 1 April, 1 July and 1 October. The level is normally announced about seven weeks ahead, so you can see a change coming. The next change is 1 July 2026, when the cap rises 13% to £1,862 for typical use.

Whether your unit rates change on that date depends on the tariff you’re on:

Standard variable (SVT)

Changes on the cap start date (next: 1 July 2026). Your supplier must tell you about changes, but the cap date is the key timing driver.

Fixed tariff

Unit rates typically stay the same until your fixed term ends. The 1 July cap rise won’t touch a true fix — that’s exactly why many households fixed ahead of it (check your contract).

Tracker / time-of-use

Rates can move more often (daily/half-hourly, depending on product). The Ofgem cap still matters for SVTs, but trackers follow their own formula.

Key takeaway: The Ofgem review sets the cap level for the next quarter. Your unit rates change when your tariff updates — for most SVTs, that’s the same day the new cap starts (next: 1 July 2026 at 26.11p/kWh electricity and 7.33p/kWh gas).

What to check now (2 minutes)

  • Are you on fixed, variable (SVT), tracker or time-of-use?
  • Do you have a smart meter, prepayment meter or traditional meter?
  • Is your region England, Scotland or Wales (Northern Ireland uses a different market and regulator)?

If you’re worried about the 1 July rise

  • Compare current fixed deals before 1 July (availability varies).
  • Check for exit fees if you’re already fixed.
  • Look at unit rate + standing charge, not just one number.

How to tell exactly when your unit rates will change

To work out when your unit rates will change after an Ofgem price cap review, you need two things: your tariff type and your tariff’s effective date (often shown on your bill, online account, or welcome email). If you’re on a standard variable tariff, the next change is fixed in the calendar: 1 July 2026.

A simple rule of thumb

If you’re on an SVT
Your unit rates change on the day the new cap starts (1 Jan/Apr/Jul/Oct — next 1 July 2026). Your supplier should notify you of the price change.
If you’re fixed
Your unit rates stay the same until the fixed end date — the 1 July rise won’t apply. After the fix ends, many people move to an SVT unless they choose a new fix.
If you’re tracker/TOU
Your rates can change more frequently. Check the product’s terms (e.g., “daily tracker based on wholesale index” or half-hourly TOU).

Two realistic scenarios (with numbers)

These examples are illustrative to show timing and bill impact, using the confirmed Q3 2026 cap-level rates (electricity 26.11p/kWh, gas 7.33p/kWh). Standing charges and exact rates vary by region, payment method and meter type. We assume a dual-fuel home on direct debit.

Scenario A: You’re on an SVT (the 1 July rise)

Assumption: New cap starts on 1 July 2026. Your supplier updates SVT rates that day.

  • Apr–Jun 2026 cap (illustrative): electricity ~24.86p/kWh, gas ~6.34p/kWh
  • From 1 July 2026: electricity 26.11p/kWh, gas 7.33p/kWh
  • Monthly use (example): 250 kWh electricity, 900 kWh gas

Estimated impact on unit-rate costs:
Before: (250×£0.2486) + (900×£0.0634) = £119.21
From 1 July: (250×£0.2611) + (900×£0.0733) = £131.25
Difference: ~+£12.04/month (standing charges not included — they rise too).

Scenario B: You’re on a fixed tariff

Assumption: Your fixed tariff runs until 30 September 2026. The cap rises on 1 July, but your fix stays the same until it ends.

  • Your fix: electricity 25.5p/kWh, gas 6.8p/kWh (unchanged until 30 Sep)
  • SVT from 1 July 2026: electricity 26.11p/kWh, gas 7.33p/kWh
  • Monthly use (example): 250 kWh electricity, 900 kWh gas

Estimated unit-rate comparison (after 1 July):
Fixed: (250×£0.255) + (900×£0.068) = £124.95
SVT on the new cap: £131.25
Difference: ~£6.30/month cheaper while fixed (before exit fees and standing charges).

A fix that sits below the new July cap protects you from the rise. If you have an exit fee, weigh it against the saving. Always check your tariff information label/contract.

Important: The price cap is not a cap on your total bill. The headline £1,862 figure is for typical use — it limits the unit rate and standing charge on default tariffs, not the amount you pay. Your bill still depends on how much energy you use.

Compare deals before the 1 July cap rise (whole-of-market)

With the cap going up 13% on 1 July 2026, it’s a good moment to check fixed deals. If your SVT is due to change or your fixed deal is ending, compare available tariffs using your postcode. We’ll show options from across the market where available, based on the details you provide.

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Where to find your current tariff info

  • Your latest bill PDF (often shows tariff name and end date)
  • Your supplier online account (tariff section)
  • Welcome email/letter when you moved in or last switched

Comparison: when rates change by tariff type (and what to do)

Use this table to map Ofgem’s quarterly cap timetable to your household. With the 1 July 2026 cap up 13%, knowing which row you sit in tells you whether the rise hits you now or later.

Tariff type Does the Ofgem cap apply? Typical rate change timing Best next step
Standard Variable (SVT) Yes (it sets max unit rates/standing charges by region/meter/payment) On the quarter date — next 1 July 2026 (then 1 Oct) Compare a fixed deal before 1 July; check both unit rate and standing charge
Fixed Not directly (your fix can be above or below the cap) Typically at end of fixed term (the 1 July rise won’t apply mid-fix) Check end date + exit fees; line up a switch 2–6 weeks before it ends
Tracker Varies (some are linked to wholesale; may have caps/floors) Can change daily or on a defined schedule Understand the formula; check risk if prices rise quickly
Time-of-use (e.g., Economy 7) Often yes for default tariffs; TOU pricing structure adds complexity SVT TOU rates often move on cap dates (next 1 July 2026); smart tariffs can change differently Check day vs night rates and your usage pattern before switching

Decision checklist: who this suits

  • SVT customers wanting clarity on the exact date prices move (next: 1 July 2026)
  • Households approaching a fixed tariff end date
  • Anyone on prepayment or Economy 7 (where rates can differ materially)
  • Renters/homeowners who need a simple plan before the next cap quarter

Who it may not suit (or needs extra checks)

  • Northern Ireland households (different regulator/market; this page focuses on Great Britain)
  • Homes with complex metering (multiple MPANs, heat networks, landlord supplies)
  • Customers on legacy/tariffs with special terms (check contract wording)
  • If you’re in debt repayment plans with your supplier (switching can be restricted)

Costs, exclusions and common pitfalls (UK-specific)

Most confusion after an Ofgem review comes from mixing up the cap date with your own tariff rules. With the 13% rise landing on 1 July 2026, here are the gotchas we see most often.

1) Exit fees on fixed tariffs

Leaving early can trigger an exit fee (sometimes per fuel). If your fix ends soon and sits below the July cap, it may be cheaper to ride it out than to pay to leave early.

2) Standing charges are rising too

The cap covers both unit rates and standing charges. From 1 July 2026 the cap-level standing charges are around 57.19p/day electricity and 29.04p/day gas — you pay these even if you use very little.

3) Region, meter type and payment method matter

The price cap varies by distribution region and between direct debit, standard credit and prepayment. The £1,862 figure is a national typical-use average — compare like-for-like.

4) Submit a reading around 1 July

If there’s no meter reading on the change date, your supplier estimates the split between old and new rates. Submitting a reading on or near 1 July 2026 (or relying on a working smart meter) keeps the split accurate.

5) Moving home can put you on an SVT

When you move in, you’ll typically be placed on the existing supplier’s default tariff until you arrange a switch — so your rates may follow the 1 July cap change automatically.

Quick check: If you’re unsure which tariff you’re on, look for the words “Fixed”, “Standard Variable” or “Tracker” on your bill, or log into your supplier account. If you can’t find it, we can still compare options using your postcode and details.

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FAQs

When is the next energy price cap change?

The next change is 1 July 2026, when Ofgem’s cap rises 13% to £1,862 a year for typical dual-fuel direct-debit use (up from £1,641 in April–June 2026). It was announced on 27 May 2026. If you’re on a standard variable tariff, your unit rates update that day; the cap-level rates are 26.11p/kWh for electricity and 7.33p/kWh for gas, plus standing charges of 57.19p and 29.04p a day.

Does the price cap mean my bill is capped?

No. In Great Britain, Ofgem’s price cap limits the unit rate (p/kWh) and standing charge for default tariffs. The £1,862 headline is for typical use — your total bill still depends on how much energy you actually use.

If Ofgem announces a new cap, do my rates change that day?

Usually not. Ofgem announces the level roughly seven weeks ahead (the July 2026 cap was confirmed on 27 May), but the new rates take effect on the next quarter start date (1 Jan/Apr/Jul/Oct). Your supplier then applies changes in line with your tariff type.

I’m on a fixed tariff. Will the 1 July rise affect me?

Normally no. A true fixed tariff keeps its unit rates for the whole fixed term, so the 1 July 2026 cap increase won’t apply until your fix ends. Check your tariff terms for any clauses (for example, changes to VAT or certain policy costs). If a supplier proposes a change that disadvantages you, you may have rights to switch without penalty in some circumstances.

Why are my friend’s unit rates different to mine if we’re both on the cap?

Cap levels differ by region (network costs), payment method (direct debit/credit/prepayment) and meter type (including multi-rate). Your tariff may also include different standing charges, so the £1,862 national average won’t match everyone’s exact bill.

Will my direct debit change automatically when the cap changes?

Not always immediately. Many suppliers review direct debits periodically based on your estimated annual use and account balance. Your unit rates can change on the cap date (1 July 2026), while your direct debit may be adjusted later (or sooner if you’re building up debt/credit).

Is it worth fixing before 1 July 2026?

It depends on the fixed deals available and your appetite for certainty. A fix priced below the new July cap protects you from the 13% rise and from future quarterly moves, but you lose out if the cap later falls below your fixed rate. Compare the fix’s unit rate and standing charge against the July cap, and check for exit fees before you commit.

Does this apply in Northern Ireland?

Not directly. Northern Ireland has a different market and regulator (the Utility Regulator) and does not follow the Great Britain Ofgem price cap in the same way. This guide focuses on England, Scotland and Wales.

Trust, methodology and sources

Page governance

How we assess “when unit rates change”

We base the timing guidance on Ofgem’s published quarterly price cap structure for default tariffs in Great Britain and standard supplier practice for updating SVT rates on the cap effective date. The Q3 2026 figures here reflect Ofgem’s 27 May 2026 announcement (£1,862 cap from 1 July 2026; electricity 26.11p/kWh + 57.19p/day, gas 7.33p/kWh + 29.04p/day).

Assumptions used in this guide:

  • Applies to households in England, Scotland and Wales (not Northern Ireland).
  • “Unit rates change on cap day” refers mainly to SVTs; fixed/tracker/TOU products can follow different rules.
  • Worked examples are illustrative, exclude standing charges unless stated, and show direction and timing, not guaranteed savings.

Limitations: Individual supplier terms, meter configurations (e.g., Economy 7), regional network costs, and payment method can change the exact rates you see. If you’re in debt with your supplier or on certain support schemes, switching may have additional constraints.

Primary sources

We link to third-party sources for transparency. Their pages may be updated independently of this guide.

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Updated on 27 Jun 2026