Ofgem confirmed the July–September 2026 price cap at £1,663 for a typical dual-fuel household on Direct Debit — a 13% rise on the May 2026 level of £1,641. It took effect 1 July 2026 and ran to 30 September 2026; the cap is now £1,723.
12-month fixed tariffs from EDF, Octopus, EON Next and British Gas can be compared against this confirmed cap on your own usage. See the cheapest fixes by postcode →
August 2026 Energy Bill Changes: Which Tariff Should You Switch To?
The Q2 2026 price cap was mid-quarter in May, the Q3 cap announcement landed on 27 May, and supplier fixed-deals were repricing weekly. Here's how to decide whether to fix, stay variable, or wait — with concrete examples for typical UK households.
- What's actually changing in May (and what isn't)
- Three switching scenarios with real numbers — typical, low and high usage
- When to wait until 27 May and when to switch this week
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What's changing in May 2026 (short version)
Three things to know before you decide:
- The price cap didn't change in May. The Q2 2026 cap (£1,641 typical dual-fuel) ran from 1 April through 30 June. Your standard variable tariff (SVT) will be at the same rates today as it was three weeks ago.
- Fixed-tariff offers are repricing. Suppliers update their fixed-deal pricing weekly based on wholesale forecasts. The cheapest fix this week is often different to two weeks ago.
- Q3 cap announcement: 27 May. Ofgem confirms the cap that takes effect 1 July. Forecasters currently expect a small change either way — watch this date.
Three switching scenarios — typical UK households
Costs below are illustrative for May–August 2026 and assume a mid-range fixed-deal that beats the cap by 4%, dual fuel, direct debit, no exit fees:
| Household | Annual usage | Stay on SVT | Switch to fix | Annual saving |
|---|---|---|---|---|
| Low | 1,800 kWh elec, 8,000 kWh gas | £1,360 | £1,305 | £55 |
| Typical (Ofgem TDCV) | 2,500 kWh elec, 9,500 kWh gas | £1,641 | £1,575 | £66 |
| High | 4,500 kWh elec, 18,000 kWh gas | £2,540 | £2,440 | £100 |
Higher-usage homes save more in absolute terms. Lower-usage homes should pay extra attention to standing charges — a "low standing charge" tariff can sometimes beat a "low unit rate" one for sub-2,000 kWh electricity.
When fixing now is the right move
- Your usage is high and stable. Bigger annual savings, and locking in protects against any Q3 cap rise on 1 July.
- You hate switching admin. A 12–24 month fix means you can stop watching the market for a year.
- Your current tariff is rolling onto SVT soon. Don't drift — fixed deals at any level usually beat SVT.
- You found a deal with no exit fees. No-exit-fee fixed deals are essentially free options: if Q3 looks cheaper, you can switch again.
When waiting until 27 May makes sense
- You're on SVT and not in a hurry. The cap didn't change before 1 July. Three weeks of patience costs you nothing if you know your numbers.
- You're considering a long fix (24m+). The wholesale picture clarifies after Ofgem's Q3 announcement. A long fix that looks great today might look mediocre on 28 May, or vice versa.
- You're on a fixed deal that ends after July. No need to act — your existing deal is unaffected by anything happening in May or July.
Decision checklist for July 2026
- Find your annual kWh. From your supplier app or last annual statement. Don't guess.
- Check exit fees on your current tariff. If you're locked in with a £75 exit fee, switching for a £40 saving is a loss.
- Compare by total annual cost for your usage, region and meter type — not headline unit rate.
- Read the rate-protection terms. "Fix and fall" tariffs are different to standard fixes — make sure you understand what you're buying.
- Confirm the contract length and exit terms before you click switch.
Frequently Asked Questions
Not from the cap — the Q2 2026 cap ran through 30 June. If you're on a fixed deal, no change. If you're on SVT, your unit rates are the same in May as in April. Bills can still change with usage (heating drops in spring) and tariff repricing if you switch.
Often yes. Fixed deals consistently undercut the cap by 3–7% currently. The main exceptions: if you're approaching the end of an existing fix (wait until it ends to avoid exit fees), or if you're considering a 24m+ fix (wait until 27 May for clarity).
There isn't one cheapest — the answer depends on your region, meter type and usage profile. For typical 2,700 kWh / 11,500 kWh dual-fuel direct-debit, fixed deals around £1,540–£1,580 annual are common as of early May 2026.
Ofgem announces the January–March 2027 cap on 25 November 2026; it takes effect on 1 January 2027.
Usually best to ride out the existing fix. Exit fees often outweigh the savings of switching 4–8 weeks early. Set a calendar reminder for 4 weeks before your end date and switch then.
SVT (standard variable tariff) tracks the Ofgem cap — your rates change each quarter with the cap (the next change is on 1 January 2027). Fixed tariffs lock your unit rates and standing charges for 12–24 months, regardless of cap changes.
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Information is for general guidance based on Ofgem published cap data and supplier pricing as of early May 2026. Specific rates depend on your postcode, meter type and tariff terms. Always check the latest tariff details before switching. EnergyPlus is an independent comparison service.
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