Last updated: April 2026
Understand how the Ofgem energy price cap works, when it changes, and how it affects what you pay for gas and electricity.
The Ofgem energy price cap is a limit on the maximum amount that energy suppliers can charge per unit of gas and electricity on their default (variable) tariffs. It was introduced in January 2019 to protect consumers from overpaying. The cap does not limit your total bill — it limits the rates. If you use more energy, you will still pay more. The cap is set by Ofgem, the energy regulator, and is reviewed quarterly.
The Ofgem price cap for Q2 2026 (April to June) is set at £1,641 per year for a typical dual fuel household paying by direct debit. This is based on typical annual consumption of 2,700 kWh of electricity and 11,500 kWh of gas. Your actual bill will differ if your usage is above or below these typical figures.
Ofgem calculates the price cap based on several cost components: wholesale energy costs (the price suppliers pay for gas and electricity), network costs (charges for maintaining pipes and wires), policy costs (government environmental and social levies), operating costs (supplier running costs), and a supplier profit margin. Wholesale costs are the most volatile component and drive most cap changes.
The price cap is reviewed and updated quarterly: January, April, July, and October. Ofgem announces the new cap level approximately 2 months before it takes effect. The cap can go up or down depending primarily on wholesale energy market movements. Suppliers must adjust their default tariff rates to comply with the new cap from the effective date.
The price cap only applies to default variable tariffs (SVTs) and prepayment meter tariffs. Fixed-rate tariffs are not subject to the cap and can be priced above or below it. If you are on a fixed deal, your rates stay the same regardless of cap changes until your fixed term ends.
No, £1,641 is based on typical household usage (2,700 kWh electricity, 11,500 kWh gas). If you use more energy, you will pay more. If you use less, you will pay less. The cap limits the per-unit rate and standing charge, not your total bill.
Yes, you can pay less than the cap by: switching to a fixed tariff priced below the cap rate, reducing your energy usage, or choosing a supplier offering rates below the maximum cap level. Not all suppliers charge the full cap rate on their variable tariffs.
The price cap was originally set to expire in 2023 but has been extended indefinitely due to the energy crisis. As of 2026, there are no announced plans to remove it. Ofgem continues to review the cap quarterly to protect consumers on default tariffs.
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Information sourced from Ofgem, Citizens Advice, and DESNZ. Last updated April 2026.
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