What is the February 2026 energy price cap?
What is the energy price cap?
The energy price cap is a limit on the unit rates and standing charges that energy suppliers can charge for their "default" or standard variable tariffs. The cap is set by Ofgem, the energy regulator, and is reviewed four times a year.
What is the energy price cap for January 2026?
The January 2026 price cap, which is valid until 31 March, is set at £1,758 per year.
This is a £3 increase on the previous price cap, but with overall energy usage likely to be higher than usual during these months, bills could rise by more than the price cap suggests.
If you're on a standard variable tariff, you should compare energy deals because it's likely you'll be able to save.
What will the April 2026 price cap be?
Ofgem has announced that the next price cap will be set at £1,641, largely thanks to an average of £150 being taken off bills as part of the government's autumn budget.
The £150 reduction is being achieved by removing the Energy Company Obligation and Renewables Obligation green levies from customers' bills. These payments are baked into unit rate costs for gas and electricity, meaning these will come down. It also means that customers will benefit from the reductions differently depending on how much energy they use. The higher the usage, the more they could save and vice versa.
How will the 2026 energy price cap affect my bills?
The cap only applies to the unit rates of standard variable tariffs. These tariffs are typically the most expensive that suppliers offer. If you haven't switched energy before, or you've rolled off a fixed energy tariff, you're likely to be on one of these tariffs.
It's important to remember that the cap is based on unit rates - that's the actual price that is changing - but in order to more clearly and easily report it, the "cap level" (currently £1,758) is based on the annual usage of an average use dual fuel customer paying by direct debit. This means that you could actually pay more than the cap amount if you live in a bigger house and/or use more energy.
“This 7% drop in April’s energy price cap is a meaningful cut for household bills, taking default tariffs to their lowest level in almost two years. While energy won’t feel ‘cheap’ for consumers, this is a welcome move in the right direction.
"Despite this change, households stuck on the price cap should not rest on their laurels. Customers switching to a cheap fixed tariff could see their bills up to 19% cheaper than today’s standard rates once the reduction kicks in, compared with the 7% reduction from simply sticking with the price cap.”
What are the unit rates and standing charges for the January 2026 energy price cap?
For the price cap that runs from 1 January to 31 March 2026, the average unit rates and standing charges are:
| Electricity | Gas | |
|---|---|---|
| Unit rates | 27.69p per kWh | 5.93p per kWh |
| Standing charge | 54.75p per day | 35.09p per day |
For the price cap that runs from 1 April to 30 June 2026, the average unit rates and standing charges will be:
| Electricity | Gas | |
|---|---|---|
| Unit rates | 24.67p per kWh | 5.74p per kWh |
| Standing charge | 57.21p per day | 29.09p per day |
Unit rates and standing charges differ slightly according to the region of the UK you live in. For instance, customers in the North Wales and Mersey region tend to pay more for their electricity than customers in London. Rural areas generally pay more than predominantly urban ones because the cost of transporting power to remote places is greater than transporting it throughout more populated areas.
What is the 2026 energy price cap forecast?
It's difficult to give an energy price cap forecast because the wholesale market is still so unpredictable. However, British Gas regularly releases predictions for future price cap levels every few weeks.
The table below shows where the price cap level could go in the future.
| Price cap period | Annual energy cost for an average usage medium-sized household paying by Direct Debit |
|---|---|
| 1 October to 31 December 2025 | £1,755 |
| 1 January to 31 March 2026 | £1,758 |
| 1 April to 30 June 2026 | £1,641 |
| 1 July to 30 September (British Gas prediction) | £1,640 |
How is the energy price cap calculated?
The price cap is set by Ofgem, the regulator for the energy industry. The way the cap level is calculated is based on a range of factors, such as the wholesale cost of energy, network costs, policy costs, operating costs and prepayment meter costs.
Ofgem has committed to reviewing the level of the energy price cap four times a year in February, May, August and November. The next review is set to be announced in February 2026 to come into effect in April.
When are the energy price cap assessment periods?
Ofgem looks at wholesale prices over set periods before each price cap reset.
The assessment period for the upcoming price caps are as follows:
| Price cap period | Announcement date | Price cap assessment period |
|---|---|---|
| 1 April - 30 June 2026 | 25 February 2026 | 18 November 2025 - 17 February 2026 |
| 1 July - 30 September 2026 | TBC - but by 27 May 2026 | 18 February - 18 May 2026 |
What was the Energy Price Guarantee?
In October 2022, when Ofgem's price cap level was forecast to rise to £4,279 in January 2023, the Energy Price Guarantee was introduced to protect customers from unprecedented energy bills. It was designed to act as a "safety" price cap operating at a level of £2,500 per year (subsidised by the government) for average use dual fuel customers.
When the price cap level was announced in May 2023, Ofgem and the government also announced that the EPG's threshold would rise to £3,000. However, it has now been withdrawn completely.
What is the 2026 prepayment meter price cap?
The price cap affects the four million prepayment customers in the UK in the same way that it affects those on standard variable tariffs. There is a separate cap for prepayment tariffs, which is reviewed independently of the SVT cap by Ofgem.
The current prepayment price cap level is £1,711, but it will drop to £1,597 in April.
What are the prepayment price cap average unit rates and standing charges?
For the January to April 2026 price cap, the prepayment unit rates and standing charges are:
| Electricity | Gas | |
|---|---|---|
| Unit rates | 26.84p per kWh | 5.72p per kWh |
| Standing charge | 54.74p per day | 35.09p per day |
For the April to June 2026 price cap, the prepayment unit rates and standing charges will be:
| Electricity | Gas | |
|---|---|---|
| Unit rates | 23.93p per kWh | 5.53p per kWh |
| Standing charge | 57.21p per day | 29.09p per day |
Why is the energy price cap controversial?
There are a few reasons why the energy price cap has come under fire from energy experts:
- Significant knock-on costs to customers. Since the increase of energy prices in September 2021, the cap has been criticised by suppliers for not allowing them to charge more for standard variable tariffs. This means costs are passed on to customers in one hit when the cap level rises. This is why the cap is now reviewed four times a year, with Ofgem hoping that any wholesale cost savings can be more quickly passed on to customers.
- Better savings can (usually) be found by switching. This was the case but isn't necessarily true anymore given the wholesale energy market situation.
- A cap hurts competition. Introducing a cap does not encourage suppliers to compete for business by offering better tariffs or improving customer service. There is no pressure on energy companies to innovate if customers believe they are ‘safeguarded’ from high costs and less likely to take their business elsewhere.
- False sense of security. The cap can still go up (or down) as energy prices will always be subject to wholesale costs, distribution costs and other factors. The concern is that consumers will assume the price cap means they are protected from fluctuating costs by the government’s cap.
Does the price cap mean I don't need to switch?
If you're on a price-capped tariff, you should switch because you're almost certainly paying more than you need to for your energy.
Ofgem can raise or lower the level of the cap depending on the wholesale market and, at the moment, the cap is likely to stay at a high level.
If you're interested in potentially switching, you can compare energy prices and see if there are any deals that are right for you by clicking below.
Run an energy comparison
Click here to compare energy prices and get started on your energy switch.
Are any suppliers exempt from the price cap?
Ofgem reserves the right to grant temporary or permanent exemptions from the price cap for tariffs and suppliers which make significant efforts to generate and supply green energy to customers. This means that they are allowed to charge rates that exceed the price cap unit rate on SVTs - in other words, the price cap does not apply to them.
Ecotricity, Good Energy and 100Green are the three suppliers who have been granted permanent exemption from the price cap.
How has the price cap level changed over time?
What if I'm struggling to pay my energy bills?
There are no government support measures currently available. However, there is financial help from the Household Support Fund (via local councils) and from various charities and organisations both nationally and locally.
You can also check to see if you can get the Warm Home Discount, Winter Fuel Payment and/or Cold Weather Payment, which are paid every year to eligible households.
Is there a business energy price cap?
There’s no price cap on business energy. If you have a non-domestic energy contract, the price cap will not protect your bills. The only way to guarantee bill stability is to fix your rates. If your contract is up for renewal or if it’s already ended, head to our business energy page to compare quotes from a panel of suppliers and switch.
Key takeaways
- The price cap limits the amount energy suppliers can charge customers on standard variable tariffs for each unit of energy.
- It's reported as an overall annual usage figure for an average household - currently £1,758.
- It is not a cap on a total bill - customers who use more than £1,758 worth of energy will pay more while those who use less will pay less.
- Customers can fix their deals so they are not affected by price cap increases.
- The next price cap will be announced by 25 February 2026.
FAQs
Will the price cap be displayed on my energy bill?
There may be information about the price cap on your energy bill, but its level won't be factored into any calculations or information about your charges.
What will happen to the energy price cap in 2026?
The energy price cap rose to £1,758 in January 2026 but will come down to £1,641 in April. Its next update is due to be announced by 27 May.