Skip to main content
Home›Consumer›Energy Price Cap

Energy Price Cap: What It Is and Your Energy Bill Rights

Data last checked on .

Checked against ofgem.gov.uk and uregni.gov.uk. Edited by Steven Butler.

All the pages checked

The energy price cap is the maximum amount a supplier can charge for each unit of energy and the daily standing charge. It does not limit your total bill. Ofgem sets it every 3 months, and it protects people on standard variable tariffs in England, Scotland and Wales. From 1 October to 31 December 2026 the price cap is £1,723 a year.

Key points
  • ✓The price cap limits the unit rate and standing charge your supplier can charge, not your total bill. The more energy you use, the higher your bill.
  • ✓You are not protected by the price cap if you agreed a fixed tariff, have a business energy contract, or get your heat from a heat network or heating oil.
  • ✓You do not have to pay for energy used more than 12 months ago if you were not billed accurately for it, unless you acted unreasonably.
  • ✓Suppliers must switch you within 5 working days. If they do not, your new supplier must pay you £40.
  • ✓You can complain to the Energy Ombudsman if your supplier has not fixed a problem within 8 weeks.

What is the energy price cap?

Your supplier decides the unit rate, the cost of each kilowatt hour of electricity and gas, and the standing charge, which you pay every day even if you use no energy. Ofgem sets the maximum your supplier can charge for the unit rate and standing charge together. The cap can vary by where you live, how you pay, the fuel and the type of meter.

The price cap protects people on standard variable tariffs. You are not protected if you:

  • No: agreed a fixed tariff with your supplier
  • No: have a business energy contract
  • No: get your heat from a heat network or use heating oil

What is the price cap from 1 October 2026?

From 1 October to 31 December 2026 the price cap is £1,723 a year, up 4% on the previous period. That figure is based on the average unit rate and standing charge for people paying by Direct Debit in England, Scotland and Wales.

Average by Direct Debit1 July to 30 September 20261 October to 31 December 2026
Electricity unit rate26.11 pence per kWh26.32 pence per kWh
Electricity standing charge57.19 pence a day54.83 pence a day
Gas unit rate7.33 pence per kWh7.97 pence per kWh
Gas standing charge29.04 pence a day29.68 pence a day
There is no VAT on electricity from 1 October 2026 to 31 March 2027, so Ofgem says the costs cannot be compared directly with earlier periods. Gas figures include 5% VAT.

Our Autumn Budget 2026 guide covers the energy bill support announced on 28 October.

Do you have to pay a back bill?

You have to pay any accurate bill, including a back bill. But under Ofgem's back billing rules you do not have to pay for energy you used more than 12 months ago if you have not had an accurate bill or statement for it before, or your Direct Debit was set too low to cover it. The rules apply to households and microbusinesses.

You will have to pay for older energy if you acted unreasonably, for example by:

  • stopping your supplier from billing you accurately, including by blocking access to your meter
  • ignoring requests for payment from your supplier
  • stealing electricity or gas

If your supplier has not followed the rules, contact it straight away. It will refund any money taken in error.

How quickly must an energy switch happen?

You can switch supplier or tariff at any time. Suppliers must switch your supply within 5 working days, and if they do not, your new supplier must pay you £40 automatically. If you are switched by mistake you could also get £40. You can cancel a switch within 14 days, and you may have to pay an exit fee if you leave a fixed tariff early.

You can still switch if you have owed your old supplier money for less than 28 days, or if you have a prepayment meter and owe up to £500. You cannot switch if you have been in debt to your supplier for more than 28 days.

What help is there if you cannot pay your energy bill?

If you are struggling to pay, you can ask your supplier to:

  • agree a payment plan, payment break or reduction
  • review your current payments and debt repayments
  • give you access to hardship funds

In England and Wales you can also apply for Breathing Space, which stops creditors taking action while you get debt advice. Our guides to Breathing Space and priority debts explain how to deal with energy arrears, and our Winter Fuel Payment guide covers help for pensioners.

How do you complain about your energy supplier?

Complain to your supplier first. It must try to fix the problem and resolve your complaint within 8 weeks. You can then go to the Energy Ombudsman if:

  • Yes: the problem is not fixed within 8 weeks
  • Yes: you and the energy company cannot agree how to fix it
  • Yes: you receive a deadlock letter saying the problem cannot be fixed
  • Yes: you are not happy with the decision

The Energy Ombudsman will tell you its decision within 6 weeks of you escalating the complaint. You can call it on 0330 440 1624.

Northern Ireland

The price cap sets prices for customers in Great Britain. In Northern Ireland the Utility Regulator regulates tariffs instead: it scrutinises the costs suppliers incur and caps their profits. Our consumer guides cover your other rights as a customer.

Where to go next

Debt
Priority Debts
Which debts to pay first, including energy arrears, and why.
Breathing Space
How the debt respite scheme pauses creditor action while you get advice.
Winter Fuel Payment
Who gets the Winter Fuel Payment and how it is paid.
Phone and Broadband Rights
Free numbers, mid-contract price rises and compensation when your broadband fails.

Related guides

Package Holidays
Cancellation rights, and ATOL protection if the company goes bust
Digital Products
Your rights when a digital product is faulty or not as described: downloaded games, apps, streaming and software, and...
Faulty Goods
Repair, replacement, and how to get your money back
Car Finance Claims
The FCA car finance compensation scheme: who may be owed money, how to complain to your lender for free and what the...
Parcel Delivery Complaints
DPD complaints and parcel problems: if you bought online, go to the seller first. Who is responsible, and how to...
Flight Delay Compensation
The exact amounts, deadlines, and how to keep it all instead of losing a cut to a claims firm

Found this useful? Link to it

If you run a site, write an article, or help others with their rights, please link to this guide, it helps more people find free, reliable guidance.

https://www.knowyourrightsuk.com/consumer/energy-price-cap
Know Your Rights UK. "Energy Price Cap: What It Is and Your Energy Bill Rights." Know Your Rights UK, https://www.knowyourrightsuk.com/consumer/energy-price-cap