Cheapest UK energy supplier after the July 2026 price cap rise
Ofgem has confirmed the July 2026 default tariff cap at £1,663/yr for a typical dual-fuel direct-debit home — a 13% rise from 1 July to 30 September 2026. Several 12-month fixed deals are priced below it. Compare live options for your postcode.
- Confirmed July 2026 cap: £1,663/yr (typical dual-fuel direct debit)
- The cheapest fixes on our panel sit several percent below the cap — exact prices depend on your postcode
- Region-by-region: where switching saves the most this summer
Cap and tariff figures are for typical direct-debit dual-fuel households at TDCV consumption. Actual bills vary by region, payment method and usage.
Fast answer
Ofgem confirmed that the July 2026 price cap rose to £1,663/yr for a typical dual-fuel direct-debit household — for 1 July to 30 September 2026. The rise is driven by higher wholesale gas prices linked to Middle East conflict: the gas element is up about 24% and electricity up roughly 5%. The cap applies from 1 July to 30 September 2026.
The cheapest 12-month fixed deals on our live panel are typically priced below the £1,663 cap, several with no exit fees — run your postcode through the comparison on this page for today's exact prices.
If you are on a capped standard variable tariff today, switching to a competitive fix now locks in a rate below the £1,663 cap and protects you from further rises. Switching is free, takes about five working days, and you can do it even without a smart meter.
Cheapest fixed tariffs that beat the £1,663 July cap
Indicative typical-use annual cost (dual fuel, direct debit, GB average), ranked cheapest first. Every tariff below undercuts the confirmed £1,663 July 2026 cap. Live availability and pricing vary by region and postcode — confirm via a quote.
| Supplier / tariff | Length | Est. annual cost | vs £1,663 cap |
|---|---|---|---|
| OVO Energy — 2-year Fixed | 24m | £1,705 | −£157 |
| British Gas — Fixed | 12m | £1,719 | −£143 |
Exit fees: Octopus charges £0; E.ON Next and EDF charge £25 per fuel (£50 dual fuel). Cap-tracker variable tariffs (Octopus Tracker, EDF Ensure) and time-of-use products (Agile, Cosy) are not in this table — they can be cheaper than any fix but carry different risk.
Find your cheapest supplier in under a minute
We compare whole-of-market fixes against the confirmed £1,663 July 2026 cap rate for your region. No need to know your unit rates — we will pull regional pricing from your postcode.
- Whole-of-market panel including the names above and challenger suppliers
- Tariffs filtered to those genuinely available in your region today
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Region-by-region: where switching saves most this summer
The £1,663 figure is a GB average. Ofgem sets different unit rates and standing charges for each of the 14 GB regions. The July cap's GB-average direct-debit rates are 26.11p/kWh for electricity (57.19p/day standing charge) and 7.33p/kWh for gas (29.04p/day). Households in the North West, Merseyside & North Wales, and Northern Scotland tend to pay the highest standard prices, and so usually see the largest cash savings from switching to a competitive fix.
Biggest expected savings
North West, Merseyside & North Wales, Northern Scotland — typically £200–£280/yr off a 12-month fix versus the July cap.
Mid-range savings
Yorkshire, East Midlands, West Midlands, South Wales — typically £160–£230/yr.
Smaller (but still real) savings
London, Southern, South East — typically £130–£200/yr; the standing-charge gap is narrower.
Figures use the confirmed July 2026 cap and a TDCV household. Actual savings depend on your consumption, payment method and whether you switch single fuel or dual fuel.
Common pitfalls when switching around the cap rise
Waiting past 1 July
If you do nothing, your variable tariff rose to the £1,663 cap on 1 July. A sub-cap fix locked in now avoids the 13% jump entirely.
Headline unit rate
Always compare on total annual cost — a low unit rate paired with a high standing charge can be worse than the cap for low users. The cap is a unit-rate cap, not a total-bill cap.
Exit fees
Mid-contract switches can incur £25–£50 per fuel (Octopus charges £0). Suppliers must let you leave fee-free in the last 49 days of your fix.
Anchoring to one quarter
The October 2026 cap is expected to rise again as winter wholesale costs feed through, so a 12-month fix below today's cap usually wins over the full year.
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FAQs — July 2026 cap and switching
How we assess this
- Written by:
- EnergyPlus Editorial Team
- Reviewed by:
- EnergyPlus Energy Specialist
- Last updated
- July 2026
The July 2026 cap figures are Ofgem's confirmed direct-debit GB averages announced (£1,663/yr; electricity 26.11p/kWh and 57.19p/day, gas 7.33p/kWh and 29.04p/day). Tariff data reflects live products visible to our switching panel in July 2026; availability is regional and changes daily.
Sources
Beat the £1,663 July 2026 cap
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