Energy tariffs 2026: the UK landscape, the July £1,862 cap & how to choose
From 1 July 2026 the Ofgem price cap rose to £1,862 a year for a typical dual-fuel home — up £221 (+13.5%). This is your full guide to the 2026 tariff market: fixed, standard variable, tracker, time-of-use, EV and green deals — who each suits, what has changed, and how to lock in a deal that beats the cap.
- Whole-of-market comparison for gas, electricity and dual fuel
- Every rate current for the 1 July 2026 cap rise — verified July 2026
- Plain-English breakdown of every 2026 tariff type and who it suits
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For UK households only. Results depend on your postcode, meter type and usage. Switching is subject to supplier terms and availability.
Energy tariffs 2026: the quick answer
In 2026 UK homes choose between five main tariff types: standard variable (SVT), fixed, tracker, time-of-use / EV and green. From 1 July 2026 the Ofgem price cap — which sets the maximum unit rates on standard variable tariffs only — rose to £1,862 a year for a typical dual-fuel direct-debit household, up £221 (+13.5%) from £1,641. Roughly 40% of homes are on fixed deals and are not affected until their fix ends.
If you are on a standard variable tariff, the cheapest way to beat the rise is to compare a fixed deal before 1 July and take a meter reading on 30 June. The cap is reviewed again on 1 October 2026, with analysts at Cornwall Insight forecasting roughly £1,899/yr on a current-usage basis — so the rise is unlikely to reverse this year.
Compare energy tariffs for 2026 (UK homes)
The best starting point is knowing what you pay today and when your current deal ends. EnergyPlus compares home energy tariffs across the whole market and requests quotes based on your postcode, meter type and usage — so you can see whether a fixed deal, a tracker or staying on the capped variable rate works out cheapest for your home.
Use the form to begin. With a recent bill handy you’ll get more accurate results — but you can still start without it.
Beat the 1 July cap: with the standard variable cap rose to £1,862/yr, a competitive fix can lock today’s rates for 12–24 months. If your fix ends in 2026, set a reminder 4–6 weeks before your end date — that’s usually the sweet spot to compare without rushing.
New to the jargon? Jump to tariff types or how prices are set.
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What changed for energy tariffs through 2026
2026 has been defined by the price cap moving the wrong way after a calmer spell. Ofgem confirmed the new level on 27 May 2026, and from 1 July 2026 the cap rises rather than falls. Here is what is genuinely different this year, and what it means when you compare.
| Price cap period | Typical annual bill (dual fuel, DD) | Change |
|---|---|---|
| Apr–Jun 2026 | £1,641/yr | Previous level |
| 1 Jul–30 Sep 2026 | £1,862/yr | +£221 (+13.5%) |
| 1 Oct 2026 (forecast) | ≈ £1,899/yr | Cornwall Insight estimate (current-usage basis) |
Gas is driving the rise
Wholesale gas costs are up sharply: gas unit rates climb about 24% while electricity rises only around 5%. Gas-heavy homes feel the July increase most.
Only the variable cap moves
The cap applies to standard variable tariffs only. Around 40% of homes on a fixed deal are unaffected until their contract ends — a key reason fixes are popular again.
Fixed deals are back below the cap
With the cap rising, several suppliers are pricing fixed tariffs at or below the new £1,862 level, so locking in can both stabilise and reduce your bill.
The headline rates from 1 July 2026 (direct debit): electricity 26.11p/kWh + 57.19p/day standing charge; gas 7.33p/kWh + 29.04p/day. Prepayment averages £1,812/yr; pay-on-receipt £2,005/yr.
The 2026 tariff landscape: every type compared
When people search for the best energy tariff in 2026, they are really choosing between five structures. Each prices risk differently — here is how they stack up at a glance, then in detail.
| Tariff type | How pricing works | Best for | Watch for |
|---|---|---|---|
| Standard variable (SVT) | Capped by Ofgem; rates move each quarter. £1,862/yr typical from 1 July. | People who want no contract and may move soon. | Rises with the cap — the default after a fix ends. |
| Fixed | Unit rate & standing charge locked for 12–24 months. | Budgeters wanting certainty and protection from cap rises. | Possible exit fees; compare the full annual cost. |
| Tracker | Follows wholesale prices, often updated daily or monthly. | Engaged users comfortable watching the market. | Bills can swing up as well as down. |
| Time-of-use / EV | Cheap off-peak rate (some EV deals near 7p/kWh) plus a higher peak rate. | EV drivers, heat-pump and battery homes that shift usage. | Needs a smart meter; peak rates bite if you can’t shift load. |
| Green | Electricity matched to renewables; export tariffs reach up to ~32p/kWh. | Households prioritising renewables and solar owners. | Check how “green” is defined; still compare on price. |
Standard variable tariffs (SVT)
The price-capped default you land on when a fix ends. From 1 July 2026 a typical SVT home pays about £1,862/yr. There is no exit fee, but the rate moves every quarter with the cap — and right now it is moving up.
- Best for: flexibility, no contract, imminent house moves
- Watch for: the July rise & the forecast October increase
Fixed rate tariffs
Your unit rate and standing charge are locked for the term (often 12–24 months). With the cap rising, a fix near or below £1,862/yr gives certainty and can save money — the reason about 40% of homes now sit on fixes.
- Best for: budgeting certainty and beating cap rises
- Watch for: exit fees and what happens at end of term
Tracker tariffs
Tracker rates follow the wholesale market rather than the cap, updating daily or monthly. They can undercut the cap when prices ease, but they also rise when wholesale costs climb — so they reward households happy to keep an eye on the market.
- Best for: engaged users who tolerate variability
- Watch for: no ceiling on a bad month — check the small print
Time-of-use & EV tariffs
Prices vary by time of day. The best EV deals offer a deeply discounted off-peak window (around 7p/kWh) for overnight charging, with a higher daytime rate. They suit EV owners, heat-pump homes and anyone who can run appliances overnight. A smart meter is required.
- Best for: EV charging, batteries, flexible routines
- Watch for: peak rates if your usage is mostly evenings
Green energy tariffs
Green tariffs match your electricity with renewable generation via certificates or direct sourcing. If you have solar, export (SEG) tariffs pay for the power you send back — the best rates reach up to around 32p/kWh. Compare on both price and the strength of the green claim.
- Best for: renewables-focused homes and solar owners
- Watch for: how the supplier defines “green”
Economy 7 & off-peak
A long-standing two-rate structure with a cheaper overnight period, useful for storage heating and overnight EV charging. The low night rate can be offset by a higher day rate, so it only pays off if a real share of your usage is off-peak.
- Best for: storage heaters, overnight-heavy usage
- Watch for: a high day rate eroding the night savings
If your fixed deal ends in 2026: you can usually switch without exit fees within the last 49 days of your contract. Always confirm terms with your supplier.
Which tariff type suits you in 2026?
There is no single best tariff — the right pick depends on how you use energy, your appetite for risk and your plans for the year. Match your situation below.
You want certainty and hate surprises
Choose a fixed tariff. With the cap rose to £1,862/yr, a competitive fix protects you from this rise and the forecast October increase, and makes budgeting simple.
You might move home soon
A standard variable tariff or a short fix with low/no exit fees keeps you flexible. Avoid a long fix with a high exit fee if you may leave within months.
You drive an EV or run a heat pump
A time-of-use / EV tariff with a cheap overnight window (around 7p/kWh) can cut charging and heating costs dramatically — provided you can shift load to off-peak hours and have a smart meter.
You have solar panels
Pair a green / SEG export tariff with a smart import tariff. The best export rates reach up to around 32p/kWh, and the right combination maximises what you earn and save.
You are a low-usage or all-electric home
Compare the standing charge as carefully as the unit rate — for low users it can be the biggest difference between tariffs. All-electric homes should weigh time-of-use options against a flat rate.
You like to play the market
A tracker tariff can beat the cap when wholesale prices ease — just be ready for bills to move both ways and to switch again if the market turns.
How energy prices are set in 2026: what you’re really paying for
Your bill is more than the price of gas and electricity. Understanding the components helps you spot a genuinely good deal and avoid headline numbers that don’t reflect your real annual cost.
| Bill component | What it covers | Why it matters for 2026 |
|---|---|---|
| Unit rate (p/kWh) | The price per unit of energy you use. From 1 July: elec 26.11p, gas 7.33p. | High-usage homes are most sensitive to unit-rate changes — and gas is up most. |
| Standing charge (p/day) | Daily fixed charge to stay connected. From 1 July: elec 57.19p, gas 29.04p. | Low-usage homes should compare standing charges as closely as unit rates. |
| Network costs | Charges to transport energy via national and local networks. | Varies by region, so your total can differ even with similar unit rates. |
| Wholesale costs | The underlying market cost of gas and electricity. | Higher wholesale gas is the main driver of the July 2026 rise. |
| Supplier & policy costs | Operating costs, customer service, environmental and social obligations. | Explains why tariffs differ between suppliers in the same region. |
Compare properly: a cheap unit rate isn’t always a cheap tariff. Always check the estimated annual cost — (unit rate × annual kWh) + (standing charge × 365) for each fuel — not just headline numbers.
How to choose your 2026 tariff now (before 1 July)
With the cap rising on 1 July, the window to act is short. Work through this checklist to land a tariff that matches how your household actually uses energy.
- Check your tariff end date — switching too early may trigger exit fees on a fixed deal.
- Confirm your meter type — smart, standard, Economy 7 or prepayment changes which tariffs are available.
- Compare unit rate and standing charge together — especially important for low-usage homes.
- Use realistic usage — if you’ve added an EV, heat pump or work from home, base estimates on your new normal.
- Decide fixed vs variable — a fix near £1,862/yr beats the rising cap and locks your rate; variable keeps you flexible.
- Take a meter reading on 30 June — so the cheaper pre-July rate covers your usage up to that date.
Ready to start? Go back to the comparison form and request quotes for your postcode.
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Energy tariffs 2026 FAQs
How much is the price cap from 1 July 2026?
From 1 July 2026 the Ofgem cap rose to £1,862/yr for a typical dual-fuel direct-debit home — up £221 (+13.5%) from £1,641. Unit rates are 26.11p/kWh for electricity and 7.33p/kWh for gas, with standing charges of 57.19p and 29.04p per day. The cap is a limit on standard variable rates, not a cap on your total bill.
Does the July 2026 rise affect fixed tariffs?
No. The cap applies to standard variable tariffs only. If you are on a fixed deal, your unit rate and standing charge are protected until your contract ends — around 40% of homes are on fixes and unaffected by the July rise.
How much more will I pay per month and year?
A typical standard-variable home on the cap will pay about £221 more a year — roughly £18 a month — from 1 July 2026. Your exact change depends on how much gas and electricity you use, because gas rates rise much more than electricity.
Why is gas rising more than electricity?
The increase is driven by higher wholesale gas costs. As a result, gas unit rates climb about 24% from 1 July 2026, while electricity rises only around 5%. Homes that heat with gas feel the rise most.
Should I fix my energy tariff before 1 July 2026?
If you are on a standard variable tariff, fixing before 1 July can lock in today’s rates and protect you from the rise — several fixes are priced at or below the new £1,862 cap. Compare the full estimated annual cost and any exit fees, then switch if a fix beats your projected variable bill.
Will energy prices fall later in 2026?
It looks unlikely this year. The cap is reviewed again on 1 October 2026, and Cornwall Insight currently forecasts roughly £1,899/yr on a current-usage basis — slightly higher again. Forecasts can change, but the near-term direction is upward, which is why locking in a competitive fix is worth considering now.
When is the next price cap review?
The next Ofgem price cap takes effect on 1 October 2026 and runs to 31 December 2026. Ofgem typically announces the level a few weeks beforehand. The current forecast is about £1,899/yr, so the cap is expected to rise again rather than reverse.
Do I need a smart meter to get the best 2026 tariff?
Not for most fixed and variable deals. However, time-of-use and EV tariffs — with their cheap off-peak rates — do require a smart meter so the supplier can bill different rates by time of day. We’ll show options relevant to your setup.
Prefer to skip the FAQs and see options now? Use the comparison form.
Trusted by UK households switching energy
People come to EnergyPlus for straightforward comparisons and clear next steps. Here’s what customers commonly tell us after requesting quotes and reviewing tariff options.
“The comparison was easy to follow — especially the standing charge differences. I finally understood why my ‘cheap’ tariff wasn’t actually cheap.”
“I needed a tariff that worked with overnight EV charging. The time-of-use options were explained clearly and I felt confident choosing.”
“No pressure, just helpful guidance. I submitted my postcode and got realistic options rather than salesy promises.”
Good to know: Availability of specific tariffs varies by region, meter type and supplier criteria. We’ll show the options relevant to your home.
Written by: EnergyPlus Editorial Team. Last reviewed July 2026 — rates verified July 2026 against the Ofgem price cap confirmed on 27 May 2026 for the 1 July–30 September 2026 period. Figures are typical-household estimates; your costs depend on your usage, meter type and region.
Ready to beat the 1 July cap?
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What you’ll need
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