UK Home Energy Price Cap Changes in March 2026

The home energy price cap is a limit set by Ofgem on the unit rate and standing charge that suppliers can charge customers on standard variable tariffs in England, Scotland and Wales. It is not a cap on your total bill, but on the price you pay per kWh for gas and electricity, plus daily standing charges.

If you are on a default, standard variable or deemed tariff, the price cap usually applies to you. Fixed tariffs, special online deals and some green or smart tariffs may sit outside the cap, giving you different pricing and contract terms.

Ofgem updates the cap periodically to reflect changes in wholesale energy costs, network charges, policy costs and supplier operating costs. The March 2026 change will be one of these scheduled updates and is expected to follow the existing price cap framework, unless Ofgem announces reforms before then.

• The cap will continue to set a maximum unit rate for domestic gas and electricity on standard variable tariffs.
• Your actual bill can be higher or lower than headlines, depending on how much energy you use.
• Changes from March 2026 will affect most households not on a fixed deal.
• You remain free to switch supplier or tariff if you find a better home energy deal.
• Smart meters, time-of-use tariffs and improved home efficiency remain key ways to cut costs regardless of cap levels.

The actual level of the March 2026 cap will depend on market conditions closer to the time. However, the way it influences your bill will stay broadly the same:

1. Unit rates for gas and electricity

The cap limits the maximum cost per kWh that suppliers can charge for standard variable tariffs. If the cap falls, your unit rates should fall; if it rises, your unit rates are likely to increase.

2. Standing charges

The cap also includes a maximum daily standing charge, the amount you pay simply for being connected to the energy network. This charge can change even if unit rates stay similar, and has become a bigger part of bills in recent years.

3. Total annual bill

Headline figures you see in the media are usually based on a “typical” household. Your own annual bill will depend on:

• How much gas and electricity you use
• Your region (prices vary by area)
• Whether you pay by direct debit, standard credit or prepayment
• Whether you are on a smart, fixed or variable tariff

Even a modest change in the price cap in March 2026 could add or remove hundreds of pounds per year for higher-usage homes.

The March 2026 price cap changes will impact most UK households on default home energy tariffs. You are likely to be affected if:

• You have never switched energy supplier or tariff.
• You rolled onto a standard variable tariff after a fixed deal ended.
• You moved into a new home and stayed on the supplier’s recommended tariff.
• You are on a prepayment meter (with a specific cap level for prepay customers).

If you are currently on a fixed-rate tariff that runs beyond March 2026, you may be shielded from the immediate impact until your fix expires. However, any new deal you choose afterwards will reflect the then-current market and price cap level.

The right choice for your home depends on your appetite for risk, your usage patterns and the deals available. Consider these factors when deciding whether to stay on a variable tariff covered by the cap or switch to a fixed deal:

Benefits of staying on a price-capped variable tariff

• You benefit if the cap falls after March 2026 or in later reviews.
• There is usually more flexibility to switch without exit fees.
• You avoid locking in if prices are expected to decrease.

Benefits of fixing your home energy prices

• You gain bill certainty for the length of the contract.
• You are protected if wholesale prices rise steeply and the cap increases.
• Some fixed tariffs include 100% renewable electricity or other benefits.

Important: No tariff is guaranteed to be cheaper than the cap in every scenario. It is worth comparing your expected annual cost on a fixed deal versus the current and forecast price cap levels.

You do not need to wait for the March 2026 announcement to take control of your energy bills. Here are steps you can take now:

1. Check your current tariff

Look at your latest bill or online account and find out:

• Whether you are on a fixed or variable tariff.
• Your current unit rates and standing charges.
• Your estimated annual consumption in kWh for electricity and gas.

2. Understand your household usage

Customers with higher usage are more exposed to any unit rate increases, while low-usage households may feel standing charge changes more keenly. Having an accurate view of your annual kWh usage helps when comparing tariffs.

3. Consider a smart meter

Smart meters can make it easier to:

• Track your consumption in near real time.
• Move onto time-of-use or smart tariffs that reward shifting usage away from peak times.
• Spot energy waste and identify where to cut back.

4. Improve your home’s energy efficiency

Regardless of where the price cap sits in March 2026, the cheapest kWh is still the one you do not use. Simple steps can make a noticeable difference:

• Upgrading loft and cavity wall insulation.
• Sealing draughts around doors, windows and chimneys.
• Installing smart heating controls and thermostatic radiator valves.
• Switching to LED lighting and efficient appliances.

Energy prices remain a concern for many UK households. Even with a regulated cap, bills can be difficult to manage. If you are worried about keeping up with payments as we approach March 2026, help may be available.

Depending on your circumstances, you may be able to access:

• Supplier support schemes and payment plans.
• The Warm Home Discount (if eligible).
• Household support funds or local council grants.
• Independent advice from organisations such as Citizens Advice.

If you fall behind on payments, contact your supplier as early as possible. They must work with you to find an affordable plan, and there are rules in place to protect vulnerable customers.

Ofgem typically announces new price cap levels several weeks before they come into force. As March 2026 approaches, we will update this page with the latest figures and practical guidance for homeowners and tenants.

To make sure you do not miss opportunities to switch or save, it can help to:

• Set a reminder a few weeks before March 2026.
• Review at least one full year of energy usage.
• Compare different tariffs and payment methods.

When competitive deals reappear in the market, quick action can help lock in value before rates change again.

Energy pricing is undergoing long-term change in the UK as the system transitions to lower-carbon generation. While the March 2026 price cap is one milestone, households that plan ahead for the next five to ten years are likely to be better protected.

Areas to consider include:

• Switching to more efficient heating where practical, such as heat pumps.
• Investing in insulation and glazing that reduce demand permanently.
• Exploring home solar and battery storage where suitable.
• Using smart controls to shift usage to cheaper, off-peak periods.

By combining smarter tariffs with a more efficient home, you can reduce your exposure to future price cap changes and wholesale market swings.