How often does the UK energy price cap change?

Ofgem updates the UK energy price cap four times a year. Changes usually take effect in January, April, July and October, reflecting shifts in wholesale energy costs, network charges, and other factors that influence the cost of supplying energy to homes.

What are the current UK home energy price cap rates?

The current UK home energy price cap rates vary by region, payment method and meter type. The cap sets maximum unit rates for gas and electricity (measured in pence per kWh) and a daily standing charge. For the latest detailed figures and how they affect your bill, check the most recent update on the Energy Plus price cap news page.

How will the energy price cap change between now and 2027?

Independent analysts currently expect the energy price cap to remain volatile over the next few years, with gradual stabilisation as wholesale markets normalise and new low-carbon generation comes online. Forecasts suggest that bills may fall from recent peaks but are likely to stay above pre-2021 levels through to 2027. For the latest projections and quarterly forecasts, see the updated charts and commentary on this page.

Can I still save money if I am on the price cap?

Yes. Even if you are on the price-capped standard variable tariff, you may be able to save money by switching to a competitive fixed tariff, improving your home’s insulation, upgrading to more efficient appliances or changing how and when you use energy. Energy Plus can help you compare options and find tariffs better suited to your usage.

Should I fix my energy tariff or stay on the price cap?

Whether you should fix your tariff or stay on the price cap depends on your risk tolerance, current rates and future price cap forecasts. If forecasts suggest the cap will rise, a competitive fixed deal could protect you from higher bills. If forecasts show prices falling, staying on the cap may be better. This page provides up-to-date forecasts to help you decide when to switch or fix.

How does the price cap affect my actual energy bill?

The price cap does not cap your total bill; it caps the maximum unit rates and standing charges suppliers can charge. Your total bill still depends on how much gas and electricity you use. A typical household example is often quoted in the media, but if you use more or less than a typical home, your bill will be higher or lower accordingly.

Who sets and regulates the UK energy price cap?

The UK energy price cap is set and regulated by Ofgem, the Office of Gas and Electricity Markets. Ofgem reviews supplier costs, wholesale prices, policy costs, network charges and operating costs to calculate the cap and then publishes updated levels each quarter.

What support is available if I am struggling to pay my energy bills?

If you are struggling to pay your energy bills, contact your supplier as soon as possible. They may offer payment plans, hardship funds or other support. You may also be eligible for government schemes such as the Warm Home Discount, Winter Fuel Payment or cost-of-living payments. Energy Plus provides guidance on available support and practical ways to cut usage without sacrificing comfort.

How can Energy Plus help me manage energy price cap changes?

Energy Plus tracks UK home energy price cap announcements and independent forecasts up to 2027, helping you understand when bills are likely to rise or fall. We offer clear guidance on when it may be worth fixing, how to reduce your energy consumption, and how to find more competitive tariffs, so you can make informed decisions and lower your long-term energy costs.

UK Home Energy Price Cap News & Forecasts for 2027

Q: What is the UK home energy price cap?

The UK home energy price cap is a limit set by Ofgem on the maximum unit rate and standing charge that suppliers can charge customers on standard variable and default tariffs. It is designed to protect households from excessive prices while still allowing suppliers to recover reasonable costs for gas and electricity.

Stay ahead of changes to the UK home energy price cap in 2027. Understand what it could mean for your gas and electricity bills – and how to protect your household budget.

What is the UK home energy price cap?

The UK home energy price cap is a limit, set by Ofgem, on the unit rates and standing charges that suppliers can charge customers on standard variable or default tariffs. It applies to most households that have not chosen a fixed deal and covers typical gas and electricity usage.

While the cap does not limit your total bill, it does restrict how much you pay per kWh and per day. Your actual bill still depends on how much energy you use, your home type, and where you live in Great Britain.

Since 2021 the cap has moved sharply due to wholesale market volatility. Looking ahead to 2027, the price cap remains a key tool that shapes what millions of UK households pay for their energy every quarter.

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Price cap outlook for 2027: what homeowners should expect

Energy analysts currently expect the UK home energy price cap in 2027 to remain above pre-2021 levels, but below the extreme peaks seen during the energy crisis. Wholesale markets have settled from their highs, yet structural pressures – such as network upgrades, green investment and global demand – continue to influence final unit rates.

Most forecasts point towards a year of gradual adjustment rather than dramatic spikes or crashes. That means households are likely to face:

Moderate, quarter-by-quarter changes as Ofgem updates the cap to reflect wholesale and policy costs.
Regional differences in standing charges and unit rates, depending on where you live in Great Britain.
Ongoing pressure on electricity prices as the system transitions away from gas and invests heavily in renewables and grid resilience.
Potential new fixed tariffs reappearing as suppliers gain confidence and seek to attract loyal, low-risk domestic customers.

No forecast is guaranteed, but planning ahead can make a real difference to what you pay through 2027 and beyond. Reducing your usage, understanding your tariff options and switching at the right time are the fastest ways to stay in control.

Key factors shaping the 2027 home energy price cap

The price cap formula includes wholesale energy costs, operating expenses, policy costs, VAT and a fair profit allowance. For 2027, several trends are especially important for UK homes:

Wholesale gas and power prices: still the single biggest driver of your unit rates. Prices may be less volatile than in 2022–23, but global events can still move the market quickly.
Network and infrastructure costs: billions are being invested in new cables, interconnectors and storage. These upgrades support reliability and more renewables, but they add to bills in the short term.
Environmental and social policy charges: the shift towards net zero means more support for low-carbon generation and insulation – often recovered through electricity bills.
Supplier health and competition: a more stable supplier market in 2027 should support a wider choice of tariffs, especially for homes willing to switch.
Household demand trends: electric vehicles, heat pumps and smart appliances could change when and how much power homes use, influencing system costs overall.

Keeping an eye on these drivers helps you understand why the price cap moves and whether a new fixed deal might suit your home better.

How the 2027 price cap could affect your home

The impact of the 2027 price cap on your home energy bills depends on three main elements: your tariff, how you use energy, and how efficient your property is.

If you’re on a standard variable tariff: you’ll move up or down with each price cap change. This offers flexibility, but little certainty when planning your budget.
If you lock into a fixed tariff: your rate stays the same for the length of your contract, protecting you from future rises but not letting you benefit if prices fall.
High-usage homes: larger or less insulated properties will feel changes in unit rates more strongly, as every extra kWh is charged at the new price cap level.
Low-usage homes: standing charges can make up a bigger share of the total bill, so it is vital to check how your region’s standing charges evolve during 2027.

A combination of smarter usage, better insulation and the right tariff choice is the most reliable way to manage your bills, regardless of where the price cap moves next.

Should you fix your home energy rates ahead of 2027?

With the price cap expected to adjust several times through 2027, many households are asking whether to stay on a price-capped variable tariff or move to a fixed-rate deal. The answer depends on your appetite for risk, how tight your budget is, and the gap between fixed rates and the current cap.

Reasons to consider fixing before or during 2027

You value certainty and want predictable monthly bills to help manage your household finances.
You think wholesale prices could increase again in 2027, pushing the price cap higher.
You find a fixed deal priced close to or below the forecast price cap levels.
You prefer to avoid the stress of tracking every quarterly cap announcement.

Reasons to stay on a price-capped variable tariff

You expect prices to move sideways or fall through 2027 and want to benefit if they do.
You don’t want to commit to a long contract or pay exit fees if a cheaper deal appears.
You’re already on a relatively competitive standard variable rate.
You’re actively reducing your usage through insulation and smart energy habits.

Before you decide, compare offers from several home energy suppliers, check any exit fees on your current deal, and consider how much certainty your household needs in 2027.

Practical steps to cut your home energy bills in 2027

Whatever happens to the UK home energy price cap in 2027, using less energy and using it more intelligently will always save you money. Small changes around the home can add up to big annual savings.

Improve insulation & draught-proofing

Top up loft insulation, insulate solid or cavity walls where possible, and seal gaps around doors, windows and floorboards. Better insulation means your home stays warmer for longer, reducing the energy needed for heating.

Upgrade heating controls

Smart thermostats, thermostatic radiator valves and zoned heating help you heat only the rooms you use. Dropping your thermostat by just 1°C can noticeably cut annual gas or electricity costs.

Choose efficient appliances & lighting

When replacing appliances, look for high-efficiency ratings. Swap halogens for LED bulbs and switch off devices at the plug to target the “always on” load that quietly raises your bill.

For some homes, particularly those with a suitable roof and daytime demand, installing solar PV or solar battery storage may also help offset exposure to future price cap changes by generating your own electricity.

How Ofgem price cap reviews work

Ofgem reviews the domestic price cap regularly, using a detailed methodology to estimate efficient costs for supplying energy to UK homes. Each review looks at a range of components:

Wholesale energy costs for electricity and gas bought in advance.
Network charges for using the national grid and local distribution networks.
Operating costs such as customer service, billing and metering.
Environmental and social schemes that support renewables or protect vulnerable customers.
VAT and profit margin to allow suppliers a reasonable return.

Once the new cap is calculated, suppliers must adjust their default tariff rates to comply. Your supplier will normally contact you in advance of any change, but you don’t have to wait for that letter or email – you can explore alternative tariffs at any time.

Staying informed through 2027

To stay in control of your 2027 home energy costs, consider:

Checking price cap updates each time Ofgem announces a new level.
Reviewing your tariff at least once a year, or whenever your deal ends.
Monitoring your monthly usage via your online account or smart meter.
Setting a reminder a month before your fixed deal expires, if you have one.

Small admin steps like these can stop you drifting onto expensive default tariffs and help you benefit from new competitive deals as they arrive.

Get personalised guidance on your 2027 home energy options

Every home is different. Your property type, heating system, location and lifestyle all shape how the 2027 energy price cap will affect you. Share your details and we’ll help you understand your options, compare tariffs and identify quick wins to lower your bills.

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Frequently asked questions about the 2027 home energy price cap

Barring major policy changes, the price cap is expected to remain in place in 2027, continuing to protect households on default tariffs from unfair prices. However, the exact methodology and frequency of updates may evolve as the energy market reforms and becomes more flexible.

No. The cap limits the unit rate and standing charge your supplier can charge on a standard variable tariff, not your total bill. If you use more energy, you will still pay more, even when the cap falls. That’s why improving efficiency and cutting waste are so important.

In most cases, no. If you can move to a cheaper or better-suited tariff now without paying heavy exit fees, you don’t need to wait. Regularly checking the market, especially when your current deal ends, is the best way to ensure you are not overpaying.

If you’re struggling to keep up with your energy bills, contact your supplier as early as possible. They may offer tailored payment plans, hardship funds or access to government-backed support schemes. Depending on your circumstances, you may also qualify for help such as the Warm Home Discount or cost-of-living payments.

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Updated on 13 Dec 2025