Are you wondering how effective the energy price cap has been? See the official timeline in our analysis of the figures...
The energy price cap is backstop protection from the government, calculated by Ofgem. The price cap limits the rates a supplier can charge for their default tariffs.
The first energy price cap for default energy tariffs, also called standard variable tariffs (SVTs), was introduced by Ofgem on 1st January 2019.
According to Ofgem, for the period 1 April to 30 June 2026, the cap for a typical dual-fuel household paying by Direct Debit is £1,641 per year. That is a 6.6% decrease (£117) from the previous cap of £1,758 for 1 January to 31 March 2026.
For the same period, the average capped rates for Direct Debit customers are: 24.67p per kWh for electricity with a 57.21p daily standing charge, and 5.74p per kWh for gas with a 29.09p daily standing charge. Actual rates vary by region, payment method and meter type.
PS Are you wondering what impact the new price cap will have on the daily running costs of your household appliances? See the full breakdown in pence per hour here.
History of the Energy Price Cap
First established in January 2019, the energy price cap has seen some volatility over the years.
Below is an infographic showing the history of the energy price cap and how it's changed over time, showing both the annual change and the change in the monthly average cost.
Image released under Creative Commons. If used, please attribute it by linking to: heatable.co.uk
How is the energy price cap calculated?
Ofgem calculates the energy price cap by using the average gas and electric usage statistics each year in the United Kingdom, which are 12,000 kWh per year for gas and 2,900 kWh per year for electricity.
Why was the energy price cap introduced?
The energy price cap was first introduced in response to rising concerns over fuel poverty and in order to protect consumers from volatile and in recent times - skyrocketing wholesale energy prices.
The price cap protects over 11 million household energy customers, providing stability and ensuring they pay a fair price for their energy bills.
Essentially, it prevents energy suppliers from charging whatever they want per kWh of energy used, while at the same time taking into account the real wholesale price, to prevent suppliers from purchasing energy at a higher price than they are selling.
How frequently is the price cap changed?
The energy price cap is now reviewed and updated every three months, not twice a year.
Ofgem has already published the next 2026 announcement dates as: 27 May 2026 for 1 July to 30 September 2026, 26 August 2026 for 1 October to 31 December 2026, and 25 November 2026 for 1 January to 31 March 2027.
Why do energy prices change?
Energy prices move because the costs that make up the cap change over time.
These include wholesale gas and electricity prices, the cost of running and maintaining energy networks, supplier operating costs and government policy costs.
For the April to June 2026 cap, Ofgem says the reduction was driven mainly by government budget interventions relating to policy costs, although consumers remain exposed to wider wholesale market volatility.
Fuel poverty in the UK
The latest official figures published in March 2026 show that in England, an estimated 2.36 million households - 9.4% of households - were in fuel poverty in 2025 under the Low Income Low Energy Efficiency (LILEE) measure.
That is down from 2.47 million in 2024. These figures apply to England only, not the whole UK.
What can you do to keep energy bills low?
Make the most of your energy tariff
If your home uses electric heating, an electric boiler, or other high-use electrical appliances, it’s worth checking which tariff you are on.
If you have an Economy 7 or similar multi-rate tariff, electricity is cheaper during off-peak hours, so shifting usage into those periods can help reduce costs. Ofgem also notes that Economy 7 customers are covered by the cap.
This can be especially useful if you use an immersion heater, as you can time it to heat water during cheaper off-peak periods and keep that water warm with a well-insulated tank.
Compare energy quotes
Fixed deals have returned to the market for many households, so it may be worth checking whether moving away from your current tariff could save money.
The price cap only applies to default tariffs, so some fixed tariffs may be cheaper, depending on your usage and supplier terms.
Improve your home’s energy efficiency
Reducing heat loss and improving efficiency can bring longer-term savings.
Energy Saving Trust recommends a range of measures, from insulation and heating controls to more efficient heating systems and renewable technologies like solar and storage batteries.
Consider upgrading an older boiler or switching to low-carbon heating
If your boiler is old and inefficient, replacing it with a new condensing model may cut running costs, though savings vary depending on your home and current system.
For households looking at low-carbon alternatives, the Boiler Upgrade Scheme currently offers grants of up to £7,500 in England and Wales towards eligible heat pumps or, in some cases, biomass boilers.
