EnergyPlus · May 2026

Standard Variable Tariff (SVT): UK guide for July 2026

A Standard Variable Tariff (SVT) — also called a default tariff — is the tariff you fall onto if you've never switched, or your fixed deal has expired and you didn't pick a new one. In May 2026 the SVT is capped by the April–June 2026 Ofgem default tariff cap, with the July–September figure due in late May. This page explains how the cap works, who an SVT actually suits, and how to weigh staying vs switching to a fix in May 2026.

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Editorial information, not financial advice. Prices and policy can change — always confirm against the supplier and Ofgem.

Standard Variable Tariff — June 2026 essentials

Your SVT unit rate and standing charge can't exceed the April–June 2026 cap set by Ofgem. There are no exit fees on the SVT — you can switch any time. The cheapest 12-month fixes in May 2026 sit roughly 2–6% below the cap on typical use, so most SVT customers can save by switching. The next cap (July–September) is announced by Ofgem in late May.

Quick checklist (May 2026):

  • SVT is capped by the April–June 2026 Ofgem default tariff cap until 30 June.
  • No exit fees on the SVT — you can switch any time.
  • Cheapest 12-month fixes in May 2026: ~2–6% below cap on typical use.
  • Next cap (July–September 2026) announced by Ofgem in late May.
Last updated
May 2026
Reviewed by
Energy Specialist
Audience
UK households & small businesses

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Standard Variable Tariff and the Ofgem cap in June 2026

A clear, current overview to help you choose with confidence.

How the default tariff cap works

Ofgem refreshes the cap every three months. It sets the maximum unit rate and standing charge a supplier can charge on its SVT. Suppliers can price below the cap but not above. Fixed tariffs are not capped and can be cheaper or more expensive than the SVT.

Who an SVT actually suits

Households that genuinely value the no-exit-fee flexibility (planning to move, expecting a tenant change, or about to install solar/heat pump). For everyone else, a no-exit-fee fix at or below cap is usually a better deal in May 2026.

Fixed vs SVT in June 2026

Fixes lock in unit rates and standing charges for the term, usually 12 months. In a falling-cap environment that means you give up upside. In a rising-cap environment a fix protects you. Wholesale gas softened through Q1 2026; the next direction depends on the July cap announcement.

Switching is free and quick

Switching from the SVT to a fix completes in 5 working days under Faster Switching. The new supplier handles paperwork and your supply isn't interrupted.

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Where the SVT sits vs other May 2026 options on typical UK dual-fuel use.

What to compare Typical range (May 2026) Notes
Standard Variable Tariff (SVT) At the April–June 2026 cap No exit fees; reviewed quarterly.
12-month fixed (with exit fee) ~2–6% below cap Locks in rates for the term; exit fees usually £50–£75/fuel.
12-month no-exit-fee fix At cap to ~2% below Flexibility plus a small saving over SVT.
Tracker tariff Below cap most days Daily wholesale-linked rate; SMETS2 required.
Off-peak / EV tariff 5–10p/kWh overnight Best for EV / heat-pump / storage-heater homes.

How to decide between staying on the SVT or switching (June 2026)

  1. 1. Pull your annual kWh

    Take electricity and gas kWh from your last bill or your supplier's app.

  2. 2. Get whole-of-market quotes

    Use the form on this page — compare SVT, fixes, trackers and off-peak options.

  3. 3. Compare annual cost, not unit rate

    Annual cost = unit rate × your kWh + standing charge × 365.

  4. 4. Weigh exit fees

    If a fix has a £50–£75/fuel exit fee, calculate the break-even saving vs SVT.

  5. 5. Decide your priority

    Lowest annual cost (fix), maximum flexibility (no-exit-fee fix), variable but lowest-on-average (tracker), or smart-meter off-peak.

  6. 6. Apply and submit reads

    Switch completes in 5 working days. Submit an opening read on day one.

Common pitfalls to avoid

The most frequent issues we see when households and businesses act on what looks like a good deal.

  • Staying on the SVT because “it's protected by the cap” — the cap is the ceiling, not the price.
  • Switching to a fix without checking the exit fee — a high exit fee can wipe out the saving if cap falls.
  • Ignoring standing charge — even on the SVT, low-usage homes need to weight it heavily.
  • Assuming the SVT is always the cheapest option — fixes regularly beat it in May 2026.

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Frequently asked questions

What is a Standard Variable Tariff (SVT)?

An SVT is the default energy tariff you fall onto if you've never switched, or your fixed tariff has expired and you haven't picked a new one. Suppliers must offer one, and its unit rate and standing charge cannot exceed the Ofgem default tariff cap.

Is the SVT capped in June 2026?

Yes — the April–June 2026 default tariff cap is in force throughout May, with the July–September figure due in late May. The cap is the maximum the supplier can charge; the actual rate may be at cap or just below.

Is the SVT cheaper than a fixed tariff?

In May 2026 the cheapest 12-month fixes sit roughly 2–6% below the cap on typical use, so a fix is usually cheaper. Whether it stays cheaper over the full term depends on what the July, October and January caps do.

Can I switch from the SVT any time?

Yes — there are no exit fees on the SVT. Switching completes in 5 working days under the Faster Switching guarantee.

When does Ofgem update the cap?

Quarterly: January, April, July and October. The figure for the next quarter is published a few weeks before it takes effect, so the July–September 2026 cap is announced in late May.

Does the SVT include a discount for direct debit?

Cap rates differ for direct-debit, prepayment and standard credit — direct debit is typically the cheapest of the three. The PAYG cap sits just below the default cap.

Should I switch from SVT to a tracker?

Only if you have a SMETS2 smart meter, can monitor daily prices and can tolerate occasional bad days. Trackers run below cap on most days in May 2026 but can spike during cold snaps.

How do I find the cheapest tariff for my home?

Use the form on this page — it surfaces fixes, no-exit-fee fixes, trackers and off-peak tariffs from across the market for your postcode and meter type.

Trust, methodology and sources

Page governance

Reviewed by
Energy Specialist
Last updated
May 2026

How we keep this page current

We refresh this page each month against the latest Ofgem cap, supplier tariff changes and current scheme guidance. Worked numbers are illustrative; quotes you receive via the comparison form are personalised to your meter and postcode.

Editorial independence: our priority is clarity and like-for-like comparison. Where commercial relationships exist, options are still presented on suitability and the information available at the time.

Reputable UK sources we reference

If you spot anything that looks out of date (a rule change, a new scheme), please contact EnergyPlus so we can review and update this page.

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Updated on 30 Jun 2026