UK Home Energy Price Cap – Latest News Today
Stay up to date with the latest changes to the UK home energy price cap and discover practical ways to cut your gas and electricity bills today.
Today’s UK energy price cap overview
The Ofgem energy price cap is the maximum amount that suppliers can charge most households on standard variable tariffs for each unit of gas and electricity. It does not cap your total bill, but it does limit the unit rates and standing charges you pay.
The cap is reviewed by Ofgem four times a year, meaning your home energy costs can change every three months. What you actually pay still depends on:
- How much gas and electricity your household uses
- Your payment method (Direct Debit, prepayment, or pay on receipt of bill)
- Your location in the UK (regions have different network and policy costs)
- Whether you are on a price-capped standard variable tariff or a fixed deal
When the cap falls, most homes on standard variable tariffs will see bills reduce. When it rises, bills go up unless you are protected by a competitively priced fixed tariff.
Important: the price cap is a safety net, not a discount. You can often save more by comparing tariffs and switching to a better deal when one is available.
See how much you could save
Share a few details about your home and we’ll help you explore ways to reduce your energy bills, cut waste and improve comfort.
How the UK home energy price cap works
The price cap applies to households in England, Scotland and Wales on:
- Standard variable tariffs (sometimes called “default” tariffs)
- Deemed tariffs after your old deal ends or if you move home
- Most prepayment meter tariffs (via a separate cap level)
Ofgem calculates the cap level based on wholesale energy costs, network charges, policy and operating costs, and a small supplier margin. When wholesale prices are high, the cap rises; when wholesale prices fall, the cap can come down.
The cap is expressed as both:
- Maximum unit rates (pence per kWh) for gas and electricity
- Maximum standing charges (pence per day) for each fuel
This means two homes on the same tariff can pay very different amounts each year depending on how much energy they actually use.
What the price cap does – and doesn’t – do
- Does limit – the unit price per kWh and standing charge suppliers can charge on default tariffs.
- Does protect – households from excessively high default tariff rates when markets are volatile.
- Does not freeze – your total bill; higher usage still means higher costs.
- Does not stop – suppliers offering cheaper fixed tariffs or innovative green deals.
- Does not apply – to Northern Ireland, which has a separate energy market and regulation.
Because the cap can change every three months, it’s important to keep an eye on announcements and review your tariff regularly.
Latest UK home energy price cap news
Ofgem now sets the price cap on a quarterly basis, updating it for:
- 1 January
- 1 April
- 1 July
- 1 October
Each new cap level reflects recent wholesale gas and electricity prices, along with expected costs for networks, government schemes and supplier operations. This approach aims to make bills more reflective of real-world costs while avoiding sudden, extreme jumps.
When Ofgem announces a new cap, you will normally see news headlines quoting a “typical household” annual cost. This figure is based on an assumed medium usage profile and varies by region and payment method. It is only a guide – your actual bill could be much higher or lower.
Where possible, Ofgem and suppliers also highlight how the cap affects:
- Direct Debit customers – usually the lowest unit rates
- Prepayment customers – protected by a separate cap but often pay slightly more
- Standard credit customers (pay on receipt of bill) – typically higher standing charges
If you are unsure whether you are on a price-capped tariff, check your latest bill or log in to your supplier’s online account and look for mentions of a “standard variable” or “default” tariff name.
What the latest price cap means for your home
- Check your current tariff
Confirm whether you are on a standard variable (capped) tariff or a fixed deal and when it ends. - Review your typical usage
Look at the kWh you used over the last 12 months for gas and electricity. This matters more than your direct debit amount. - Compare deals
See if any fixed or alternative tariffs offer a better total annual cost and conditions than staying on the capped rate. - Act before your next renewal
If you’re on a fix that’s ending, review options a few weeks before the expiry date.
If in doubt, getting tailored guidance based on your actual use and meter type can prevent bill shocks and help you plan ahead.
Price cap vs fixed tariffs – which is better for you?
Staying on a capped standard variable tariff
- Your unit rates move up or down every three months with the Ofgem cap.
- You’re protected from suppliers charging above the cap on default tariffs.
- There is usually no exit fee, so you can switch when better deals appear.
Staying on the price-capped tariff can make sense if forecasts suggest prices may fall, or if you prefer flexibility over price certainty.
Choosing a fixed home energy tariff
- Your unit rates are locked for the length of the contract (typically 12–24 months).
- Gives certainty about the price you pay per kWh and standing charges.
- May include exit fees if you leave early, so check the terms carefully.
Fixing can help if you want predictable costs or if you believe prices are likely to rise. However, a poor-value fix could leave you paying more than the cap for months.
Practical ways to cut your home energy bills now
1. Take control of heating and hot water
- Turn your thermostat down by 1°C – many households won’t notice the difference in comfort, but could save around 5% on heating use.
- Use programmers and smart thermostats so you only heat rooms when needed.
- Bleed radiators and ensure they’re not blocked by furniture or heavy curtains.
- Set your hot water cylinder to around 60°C if you have one, to avoid overheating water.
2. Reduce everyday electricity use
- Switch to LED bulbs in all main rooms; they use far less power than halogens.
- Run washing machines and dishwashers with full loads and use eco cycles where possible.
- Turn devices fully off rather than leaving them on standby, especially TVs, consoles and office equipment.
- Check your fridge and freezer settings – avoid overcooling and ensure door seals are in good condition.
3. Fix the fabric of your home
- Seal drafts around windows, doors, loft hatches and floorboards with inexpensive draft excluders.
- Check whether you qualify for free or subsidised insulation (loft, cavity wall, underfloor) through government-backed schemes.
- Use heavy curtains and close them at dusk to reduce heat loss through windows in winter.
- Consider long-term upgrades such as double or triple glazing when it’s time to replace windows.
Help if you’re struggling with energy bills
Rising energy prices and frequent changes to the price cap can make it hard for households to budget. If you are worried about keeping up with payments, contact your supplier as early as possible. They are required to work with you to find a suitable solution.
You may be able to access:
- Repayment plans that spread arrears over a longer period based on what you can afford.
- Hardship funds or grants from some suppliers to help clear debt or top up prepayment meters.
- The Warm Home Discount if you receive certain benefits or have a low income and high energy costs.
- Cost of living payments and other government support depending on your circumstances.
Independent debt and money advice services can also help you prioritise essential bills and negotiate with suppliers.
Stay informed about future price cap changes
Because the energy price cap now changes four times a year, having early warning of likely rises or falls can help you decide whether to fix, switch or stay put.
We monitor UK home energy trends, Ofgem announcements and supplier tariffs so you don’t have to.
UK home energy price cap – FAQs
Does the energy price cap limit my total bill?
No. The cap limits the unit price per kWh and the standing charge for default tariffs, not your total bill. If you use more energy, you will still pay more, even under the cap.
I’m on a fixed tariff – am I protected by the cap?
If you are on a fixed-term tariff, your prices are set by your contract and are usually outside the price cap. However, most suppliers must ensure their fixed deals are fair and clearly explained when you sign up.
How do I know if the cap applies to me?
Check your bill or online account. If you see terms like “standard variable”, “default” or you have not chosen a specific tariff recently, you are likely on a price-capped tariff. Prepayment tariffs are usually covered by a separate prepayment cap.
Is the energy price cap the same everywhere in the UK?
No. While Ofgem announces a typical figure for Great Britain, the actual maximum unit rates and standing charges vary by region. Network costs, policy costs and other local factors affect the final numbers.
Can suppliers charge less than the price cap?
Yes. The cap is a ceiling, not a target. Suppliers can choose to offer cheaper variable tariffs, fixed deals or special offers. That’s why it is still worth comparing tariffs, even when the cap is in place.
When will the next price cap change?
The cap is updated every three months on 1 January, 1 April, 1 July and 1 October. Ofgem usually announces each new level several weeks beforehand, giving households time to plan.
Understand the price cap & take control of your home energy
Knowing how the UK home energy price cap works is the first step. The next step is making sure you’re on the right tariff and your home is as efficient as possible.
We’ll help you make sense of the latest price cap changes and find practical ways to reduce your bills.
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