Published 11 June 2026

Ofgem Energy Price Cap Set to Increase by 13% From 1st July 2026

It’s that time of year again – British energy regulator, Ofgem, has reviewed their price cap for the next three month period. Find out what the new Ofgem energy price cap will be for 1st July to 30th September 2026, why rates are increasing, how to save on your energy bill, and what to do when you’re struggling to pay it below.

Key Statistics:

According to the BBC, over £7 billion in bills and charges was owed to water, broadband and energy companies by March 2025. (Estimates suggest that total has grown since).
According to the National Audit Office (NAO), most people did not know repayment plans were available and customers on repayment plans owed £1,000 less on average than those in debt who were without.
Household energy debt has jumped following Russia’s invasion of Ukraine, rising by 118% since 2021.

What is the Ofgem Energy Price Cap?

Introduced on 1st January 2019, the Ofgem energy price cap is designed to make bills for those on variable energy tariffs more affordable.

What are Variable Energy Tariffs?

If you’re on a variable energy tariff for your bill, this means the price you pay for electricity and gas can go up or down based on market conditions, even if you use the same amount every month.

Essentially, the cap sets the maximum amount energy providers can charge you per unit of gas and electricity that you use (if you use more, you still pay more). It also sets a maximum daily standing charge (what you pay to keep your home connected to the gas and electricity grids).

The figure is mostly based on wholesale energy prices that your provider pays and only applies to their standard and default tariffs.

What are the Ofgem Energy Price Cap Rates for 1st July to 30th September 2026?

From 1st July until 30th September 2026, the new rates are as follows (depending on how you pay your bill):

If you pay by direct debit: £1,862 per year on average for a typical dual-fuel household (an increase of around £221 per year, or 13.5%).
If you prepay: £1,812 per year (also an increase of 13.5%).
If you pay on receipt of a bill: £2,005 per year (an increase of 13.1%).

Why is the Ofgem Energy Price Cap Going Up?

Ofgem has stated the increase is due to higher wholesale gas prices, caused by the current conflict in the Middle East.

Energy-Saving Tips for This Summer:

Consider switching to a fixed rate below the current cap: Founder of MoneySavingExpert.com, Martin Lewis, has advised on using comparison websites (make sure you click “show all tariffs” to see hidden charges) to research whether there is a fixed rate below the current cap that you can switch to. He says “you’ll start saving straight away, and then from July, the fix will be 15% cheaper than the cap”. (Cheaper fixes aren’t available for those on prepayment meters).
Check if your boiler has a ‘summer mode’ or ‘hot water only’ setting: Most modern combi-boilers have a ‘summer mode’, which switches your heating off completely but keeps your hot water on. Alternatively, some boilers have a ‘hot water only’ setting which should also do the trick. Important: It is not advised to turn your boiler off completely for long periods of time, as valves and pumps can seize up and older boilers may struggle to restart.
Double-check your fridge/freezer temperature(s): The Food Standards Agency says you should keep fridges set at 5°C and freezers at -18°C. Setting it any colder than that won’t affect the quality of your food, but will add to your energy bill. Check the temperature gauge and adjust as necessary.

What Do I Do If I Can’t Pay My Energy Bills?

If you’re finding it difficult to keep up with your energy bills, you’re not alone. In February 2026, sector trade association, Energy UK, carried out their ‘Energy debt: Everyone pays’ report, which revealed that household energy debt has more than doubled over the last three years – now reaching £5.5 billion.

The first thing you should do is contact your energy provider and try to come to an agreement about a repayment plan that allows you to pay the debt off in more manageable instalments. If you can keep up with your current energy usage, your provider is more likely to agree to this plan.

Alternatively, if you enter into a DMP (Debt Management Plan) with us, we can manage all creditor contact for you, including negotiating repayment plans for energy debt arrears.

While social tariffs (cheaper deals on priority debts) for energy bills specifically have been phased out in the UK since 2011, the Warm Home Discount is still available for those eligible between October and March. This may not help now, but will certainly be a welcome reduction for struggling households when winter hits.

Don’t Miss Out on the Support You Need

According to a recent report from the National Audit Office, awareness of the Priority Services Register (PSR) remains low.

A free-to-join service, the PSR helps participating energy suppliers (in England, Wales and Scotland) look after customers who have extra communication, access or safety needs. This could include extra help with day-to-day matters like bills, or support in the event of a power cut, gas or water supply interruption.

You are eligible for free PSR services if you: