Ofgem prepayment meter price cap rates: January 2026
Check what the Ofgem price cap means for prepayment meters in January 2026, what you could pay in unit rates and standing charges, and compare whole-of-market home energy deals with EnergyPlus.
- Understand the January 2026 prepayment meter price cap (electricity & gas)
- See how unit rates and standing charges affect top-ups
- Compare whole-of-market home energy tariffs (where available)
- Switch help for traditional & smart prepayment meters
Home energy only. Price cap is set by Ofgem and varies by region and payment method. We’ll show you what to look for and help you compare options.
Compare prepayment meter tariffs (whole-of-market)
The Ofgem price cap limits how much suppliers can charge for default tariffs (including many prepayment deals). It doesn’t automatically guarantee you’re on the cheapest option. If switching is possible for your meter and address, comparing tariffs can help you find a better deal or more predictable costs.
Good to know: Prepayment meter prices are usually shown as pence per kWh (unit rate) plus a daily standing charge. Your total cost depends on how much energy you use.
What you’ll need
- Your postcode (price cap and tariffs vary by region)
- Whether you have gas, electricity, or both
- Rough usage (if you know it) — or we can estimate from household size
Prefer to read first? Jump to January 2026 cap rates or learn how prepayment costs are calculated.
Get personalised options
Fill in the form and we’ll show available home energy tariffs for your area and meter type.
If you’re in debt repayment through your meter or have a restricted tariff, switching may still be possible but needs extra checks. See switching with prepay debt.
Accessibility note: The form stacks naturally on smaller screens so you can complete it easily on mobile.
What is the Ofgem prepayment meter price cap?
The Ofgem price cap limits what energy suppliers can charge for their default tariffs (including many tariffs for customers on prepayment meters). It’s updated periodically and expressed through: unit rates (p/kWh) and standing charges (p/day), which differ by region, fuel (gas/electricity) and payment method.
For January 2026, the cap rates you’ll see published for prepayment meters are the maximums suppliers can charge on relevant default tariffs. Your actual top-ups depend on your current tariff and how much you use.
Cap ? your bill
There’s no “maximum annual bill” for everyone. Higher usage means higher cost, even under the cap.
Prepay can differ
Cap levels can vary between prepayment and direct debit, and by region (network costs).
Applies to default tariffs
Fixed deals and some special tariffs can be priced differently, but still follow wider rules and protections.
If you’re unsure whether you’re on a capped default tariff, you can still compare your options with your postcode and meter type.
January 2026 prepayment meter price cap rates (UK)
Ofgem publishes price cap figures as maximum unit rates and standing charges. These vary by region and can be updated by Ofgem. Use the table below as a guide to what “cap rates” mean and what to look for on your tariff information label.
Important: We can’t publish your exact January 2026 rates without your region and tariff details. For the most accurate view, get personalised results using your postcode.
| What you’ll see in Ofgem cap data | Electricity (prepay) | Gas (prepay) | Why it matters |
|---|---|---|---|
| Unit rate (p/kWh) | Varies by region and supplier; capped maximum applies to default tariffs | Varies by region and supplier; capped maximum applies to default tariffs | This is the price per unit of energy. Higher usage increases your total spend most. |
| Standing charge (p/day) | Varies by region; capped maximum applies to default tariffs | Varies by region; capped maximum applies to default tariffs | A daily fixed cost. You pay it even if you use little energy (or are away). |
| Typical annual consumption (TAC) examples | Used for illustrative “typical” costs in Ofgem publications | Used for illustrative “typical” costs in Ofgem publications | Helps you compare, but your home’s usage may be higher or lower. |
| Regional variations | Network costs differ across GB electricity regions | Gas distribution regions vary too | Two households can face different cap levels even with identical usage. |
Where to find your current unit rate and standing charge
Check your key tariff information (often on your online account, statement, or printed in-store receipt depending on meter type).
Look for “unit rate” (p/kWh) and “standing charge” (p/day) for both electricity and gas if you have dual fuel.
Compare those figures against other available tariffs in your region using your postcode.
If your prepay meter takes a portion of each top-up for debt recovery, your day-to-day costs can feel higher even if your tariff rates are competitive. See how debt recovery interacts with the cap.
How prepayment meter costs are calculated
With a prepayment meter, you usually pay for energy as you go by topping up at a shop, PayPoint/Payzone, via an app, or online (depending on your meter and supplier). The price cap still works through the same two building blocks:
1) Unit rate (p/kWh)
Each kWh you use costs a set number of pence. Using less energy reduces this part of the cost.
2) Standing charge (p/day)
A daily charge for maintaining supply. You pay it even if you use very little energy.
A simple worked example (illustrative)
| Item | Example value | How it affects your top-ups |
|---|---|---|
| Daily standing charge | e.g. 55p/day | Over 30 days that’s ~£16.50, taken across the month regardless of usage. |
| Unit rate | e.g. 25p/kWh | If you use 250 kWh, that portion is ~£62.50. |
| Total energy cost | ~£79.00/month | This is what your top-ups need to cover (plus any debt recovery on the meter). |
Example values are illustrative only and not January 2026 cap figures. Actual rates vary by region, fuel, and tariff.
How to reduce your costs under the January 2026 cap
If you’re on a prepayment meter, you’ll normally feel changes in prices quickly because you top up regularly. These practical steps can help you lower usage and avoid common prepay pitfalls.
Compare your tariff
A cheaper unit rate or standing charge can make a meaningful difference over time, especially for higher-use homes.
Watch the standing charge
If you use little energy, standing charges can be a big share of your total. It’s worth comparing both parts, not just unit rate.
Check for debt recovery
Some meters take a set amount from each top-up to repay debt. That can reduce the credit available for energy.
Quick home energy wins
- Reduce flow temperature on combi boilers (where suitable) and use heating timers
- Switch to LED bulbs and turn appliances fully off at the wall
- Use draught excluders and close curtains at dusk to hold heat in
- Wash at 30°C and air-dry when possible
If you’re struggling to top up
You may be eligible for support such as the Warm Home Discount (if available for your circumstances), supplier hardship funds, or payment plan adjustments. If you’re in immediate difficulty, contact your supplier as soon as possible.
Switching energy with prepayment meter debt
It’s common for prepayment meters to collect debt automatically. This is separate from the Ofgem cap rates: even if your tariff is capped, part of each top-up may be allocated to debt, leaving less credit for day-to-day energy use.
What to look for
- Debt repayment rate on the meter (e.g. £/week)
- Emergency credit and how it’s repaid
- Friendly credit settings (if applicable)
- Any additional charges or adjustments shown in your meter statement
Can you still switch?
In many cases, yes — but eligibility depends on factors like the amount owed, your supplier’s rules, and the tariff options available for your meter. Comparing options can highlight whether switching could reduce your ongoing costs.
If you can’t top up enough to keep supply on, contact your supplier urgently. They can explain support options and safe-guarding measures.
Why January 2026 cap rates vary by region
The prepayment meter price cap isn’t a single UK-wide number for unit rates and standing charges. Ofgem allows different regional levels because some costs (especially network charges) vary across Great Britain.
Electricity distribution areas
Electricity regions reflect distribution network operator areas, which can change local standing charges and unit rates under the cap.
Gas distribution zones
Gas has its own regional structure too, affecting the cap’s maximum charges for your location.
Your postcode decides
The fastest way to see your relevant rates and deals is to start with your postcode and meter type.
Want the cap context for your address? Run a comparison and we’ll show what’s available in your region.
FAQs: Ofgem prepayment meter price cap (January 2026)
Does the Ofgem price cap apply to prepayment meters?
Yes. Ofgem sets cap levels for different payment methods, including prepayment. The cap limits the maximum unit rates and standing charges on default tariffs for those customers.
Is the cap the same as an annual bill limit?
No. Your total spend depends on usage. Ofgem often quotes “typical” annual costs based on typical consumption, but if you use more, you’ll pay more.
Why do my top-ups feel higher than the cap rates?
Common reasons include: higher-than-expected usage, a high standing charge, debt repayment being taken from top-ups, and seasonal heating demand in winter.
Can I switch supplier with a prepayment meter?
Often, yes. Availability depends on your meter type (traditional or smart prepay), your property, and whether there’s debt on the meter. Comparing is the quickest way to see what’s available.
Will the January 2026 cap reduce my costs automatically?
If you’re on a capped default tariff, your supplier should adjust rates in line with the cap period. But the size of any change depends on your current rates, region, and usage.
What if I only have electricity (no gas)?
That’s fine. You can compare electricity-only tariffs for a prepayment meter. Standing charges can be particularly important for electricity-only homes.
Does Northern Ireland use the same cap?
The Ofgem price cap applies to Great Britain (England, Scotland and Wales). Northern Ireland’s energy market is regulated differently. If you’re in Northern Ireland, tariff rules and support may differ.
Still unsure what you’re paying right now? Start with your postcode and we’ll show what’s available: compare prepayment meter deals.
Why homeowners use EnergyPlus
We focus on clarity and practical comparisons, especially for households navigating prepayment meter costs and price cap changes.
Whole-of-market approach
See a broad view of available home energy tariffs for your region and meter type (subject to availability).
Designed for real households
We explain unit rates, standing charges, and prepay considerations in plain English.
Quick, postcode-led results
Your postcode helps us match your region so you can focus on offers that apply to your home.
“Clear and straightforward. The comparison helped me understand what I was paying on prepay and what could change with the cap.”
— Home energy customer, GB
“Useful to see unit rate and standing charge side-by-side rather than just a headline figure.”
— Home mover, England
Testimonials are indicative and for illustration. Your savings depend on tariff availability, region, and usage.
Ready to check your January 2026 prepay options?
Compare home energy tariffs for your postcode, understand how unit rates and standing charges affect your top-ups, and see what’s available for your prepayment meter.
- Whole-of-market comparison (where available)
- Prepay-friendly guidance for traditional and smart meters
- Fast results using your postcode
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Go to the formHome energy only. Rates and availability vary by region and supplier.
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