Ofgem prepayment meter price cap rates: March 2026
A UK guide to what the Ofgem price cap means for prepayment (PAYG) customers from March 2026, how to estimate your bill, and the practical options if costs feel too high.
- What’s capped (and what isn’t): unit rates, standing charges, and more
- How to estimate your monthly cost using your usage and your region
- Your next steps: check your tariff, compare deals, and get support if you’re struggling
Rates vary by region and meter type. Figures on this page are explained with assumptions and examples—always check your supplier’s current prices and your own usage.
Fast answer: what the March 2026 prepayment price cap rates mean
Ofgem’s price cap sets a maximum level for standard variable and default tariffs (including many prepayment/PAYG tariffs). For March 2026, the cap affects how much suppliers can charge for unit rates (pence per kWh) and standing charges (pence per day), which together determine your costs.
Important: the cap is not a cap on your total bill. If you use more energy, you’ll pay more. Rates also vary by region and meter type (traditional key/card prepay vs smart prepay credit mode).
Key takeaways
- Check your tariff name: the cap usually applies to default/SVT prepay tariffs, not necessarily fixed deals.
- Look at both numbers: unit rate and standing charge both matter—especially for low users.
- Region matters: the same supplier can have different capped prices across Great Britain.
- Debt & emergency credit: how you repay debt and any emergency credit use can change what you top up.
What you can do next
- Estimate your monthly spend using your typical kWh and standing charge.
- Compare prepay and credit options (if you’re eligible) to see what’s available.
- If you’re struggling: ask about repayment plans, Friendly Credit, or hardship support.
If you want a personalised comparison, you can use the quote form below—no obligation.
How to estimate your prepayment costs (March 2026)
Your prepayment cost estimate comes from two pieces:
- Standing charge (p/day) × days in month
- Unit rate (p/kWh) × your usage in kWh
Where to find your rates
Smart prepayment (top up by app, barcode, or online)
Check your supplier app or online account for electricity/gas prices and standing charges. If you have debt recovery set up, you’ll also see a repayment amount.
Traditional key/card meter
Rates are usually on your latest tariff info letter, supplier website, or shown when you insert your key/card at a PayPoint/Post Office terminal.
Two realistic examples (with assumptions)
Scenario A: electricity-only prepay (flat)
Assumptions (illustrative): 290 kWh/month usage; 55p/day standing charge; 26p/kWh unit rate; 30-day month; no debt recovery.
- Standing charge
- £16.50 (0.55 × 30)
- Energy used
- £75.40 (0.26 × 290)
- Estimated monthly total
- £91.90
Illustration only. Your region, meter set-up and tariff may differ.
Scenario B: dual fuel prepay with debt repayment
Assumptions (illustrative): Elec 310 kWh/month, 58p/day, 27p/kWh; Gas 900 kWh/month, 32p/day, 7p/kWh; 30 days; debt repayment set to £4/week total.
- Electricity (standing + use)
- £100.10 (0.58×30 + 0.27×310)
- Gas (standing + use)
- £72.60 (0.32×30 + 0.07×900)
- Debt repayment
- ~£17.20 (4×4.3 weeks)
- Estimated monthly top-up need
- ~£189.90
Debt rates are set individually. Ask your supplier if repayments can be adjusted if you’re struggling.
Caveat: price cap levels are published by Ofgem and can change each cap period. This page explains how to interpret and apply the cap to your likely spend, rather than listing a single national “rate” that may not match your region.
Compare energy options (whole of market)
Tell us a few details and we’ll show available tariffs for your home. We’ll highlight important differences such as standing charges, unit rates, and whether a deal suits prepayment or credit meters.
Quick definitions (so the cap makes sense)
- Prepayment / PAYG
- You top up before using energy (key, card, app, or barcode). Your meter deducts charges as you go.
- Price cap
- A limit on the rates suppliers can charge for default tariffs in each region—not a maximum total bill.
- Standing charge
- A daily fee covering fixed costs (networks, metering, admin). You pay it even with low usage.
Prepayment under the cap vs alternatives: a practical comparison
The cap can be a useful benchmark, but the best option depends on your meter type, whether you can pass a credit check, and whether you need the budget control of prepay.
| Option | Best for | Watch outs | What to check |
|---|---|---|---|
| Prepayment default tariff (price-capped) | If you want PAYG budgeting and don’t want to switch right now | Higher standing charge impact for low users; risk of self-disconnection if you can’t top up | Region, meter type, debt recovery settings, emergency credit rules |
| Prepayment fixed tariff | If you want more price certainty for a set term | May have exit fees; fix may be above the capped default at times | Unit rates + standing charges, exit fees, fix end date, payment/top-up method |
| Credit meter tariff (Direct Debit) | If you can switch to credit and want wider choice | May require a credit check or deposit; risk of debt if payments fall behind | Eligibility, payment method discounts, billing frequency, smart meter requirements |
| Stay on prepay but ask for support | If you’re in arrears or at risk of self-disconnection | Support is case-by-case; you may need to share income/outgoings | Affordable repayment plan, emergency credit, Friendly Credit, hardship funds |
Decision checklist: prepay cap suits you if…
- You want spending control and prefer topping up.
- You’re not ready/eligible to move to credit billing.
- Your usage is fairly steady and you can top up regularly.
- You’ve checked your rates and they broadly match the cap for your region.
It may not suit you if…
- You’re frequently running out of credit (risk of self-disconnection).
- You have high usage and could access a cheaper fixed/credit tariff.
- Standing charges make up a big share of your costs (very low usage homes).
- Debt recovery settings are taking too much from each top-up.
Before you switch: 60-second check
- Confirm your meter type (key/card vs smart prepay).
- Confirm your payment method and tariff name (SVT/default vs fixed).
- Note unit rate + standing charge for both fuels (if dual fuel).
- Check if you have debt set to recover on the meter.
- Check for exit fees if you’re already on a fix.
Costs, exclusions and common pitfalls (prepayment customers)
Prepayment is straightforward once you know what affects your balance. These are the issues most likely to cause surprises—especially around a new cap period.
1) Standing charges add up
If your usage is low, standing charges can be a large share of what you top up. Compare both standing charge and unit rate—not just one.
2) Debt recovery can reduce your top-up
If your meter is recovering arrears, part of each top-up may go to debt. If it’s unaffordable, ask for an adjusted repayment plan.
3) Emergency credit isn’t free
Using emergency credit usually means you’ll repay it on your next top-up, which can make the following week feel more expensive.
4) The cap may not apply to your deal
Fixed prepay tariffs can sit above or below capped default rates. Always check your tariff type and any exit fees.
5) Region and network charges vary
Two homes with identical usage can pay different rates in different regions. Use your postcode when comparing.
6) Topping up methods can affect convenience
Smart prepay may let you top up online; key/card often requires PayPoint/Post Office. Consider what’s practical for you.
If you’re running out of credit: contact your supplier as early as possible. In the UK there are protections and support routes available, particularly where there’s vulnerability in the home. Citizens Advice can also help you understand your options.
FAQs: Ofgem prepayment price cap (March 2026)
Are prepayment customers definitely on the price cap?
Many prepayment customers are on a supplier’s default/prepay tariff, which is typically covered by the cap. But if you’re on a fixed tariff (or a specialist tariff), the cap may not apply in the same way. Check your tariff name on a bill, statement, or your online account.
Does the cap set the same unit rate across the UK?
No. The cap is calculated by region (based on local network costs) and can vary between electricity regions and gas distribution areas. That’s why postcode-based comparisons are more accurate than national averages.
Is the cap a limit on what I spend each month?
No. It caps the rates (unit rates and standing charges) for default tariffs. Your bill/top-ups still depend on how much energy you use, plus any debt repayments configured on the meter.
What’s the difference between smart prepayment and key/card prepayment?
Both are PAYG. Smart prepayment is managed via a smart meter (often allowing online/app top-ups and remote updates). Key/card prepay uses a physical key or card and usually requires topping up at PayPoint/Post Office. Your tariff rates depend on your supplier, region and tariff, not only the topping up method.
Can I move from prepayment to a credit meter tariff?
Sometimes, yes—eligibility varies by supplier and circumstances. You may need to pass checks or agree a plan for any existing debt. If prepay was installed due to arrears, suppliers may require a period of stable payments first. Ask your supplier what’s possible for your account.
If I’m on prepay, can a supplier charge more than the cap?
For default tariffs that are covered by the cap, suppliers should not charge above the capped level for your region and meter type. But you could be on a fixed tariff, or have additional amounts deducted for debt recovery, emergency credit repayment, or (in some cases) other agreed charges. If you think your rates look wrong, contact your supplier and ask for a full breakdown.
What should I do if I can’t afford to top up?
Contact your supplier immediately and ask about hardship support, adjusting debt repayments, and any available protections. You can also get free, independent help from Citizens Advice. If there’s vulnerability in the home (for example, health conditions or very young children), say so clearly and ask what extra support is available.
How often does Ofgem update the price cap?
The price cap is updated periodically. The March 2026 cap applies for that cap period, and the next update may change rates up or down. Always check the date on official Ofgem announcements and your supplier’s current prices.
Trust, methodology and sources
Page details
- Written by
- EnergyPlus Editorial Team
- Reviewed by
- Energy Specialist
- Last updated
- February 2026
How we assess “price cap rates” for prepayment (our approach)
Users searching for “Ofgem prepayment meter price cap rates March 2026” usually want a number they can rely on. In practice, capped prices vary by region and can change each cap period, so we focus on a transparent method you can apply to your own home.
- We prioritise accuracy over a single headline rate: we explain how unit rates and standing charges work, and why postcode/region matters.
- We use illustrative examples: the scenarios on this page show the maths using clearly stated assumptions (kWh usage, p/kWh, p/day, and debt repayment). They are not your personal quote.
- We separate energy spend from repayments: prepayment balances can be affected by arrears/debt recovery and emergency credit repayment, which are personal to the account and sit alongside (not inside) the cap headline numbers.
- We highlight eligibility constraints: not everyone can move from prepay to a credit tariff immediately, especially where there’s outstanding debt or supplier criteria.
Limitations: Without your postcode, meter type, and supplier tariff details, no guide can state your exact capped rates. Always verify your current rates on supplier communications or your online account.
Sources (UK)
We link to primary sources where possible and update this page when Ofgem publishes new cap information for the relevant period.
Ready to check what you could pay on prepay in March 2026?
Compare tariffs for your postcode and meter type. We’ll show key details clearly—unit rates, standing charges, and any important terms.
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