February 2026 energy price cap: what we know so far

The first Ofgem energy price cap announcement of 2026 is approaching quickly. While predicting any price cap is difficult, what do we know ahead of the announcement at the end of February?

What will the price cap level be?

While we don’t know exactly how much the price cap will be, we can be almost certain that it will come down. This is because, as part of its Autumn Budget in 2025, the government pledged that £150 would be taken off energy bills from 1 April 2026, which is when the price cap will come into effect. It’s achieving this by removing certain levies from customers’ bills.

However, this probably won’t result in a blanket £150 reduction for all customers across the board. The level of the price cap is still influenced heavily by wholesale energy prices, which have been high in recent weeks due to global events. These higher wholesale prices will likely offset some of the reduction. The assessment period for the price cap ends on 17 February 2026, so anything that happens in the wholesale market between 18 February and the announcement date won't count towards this price cap.

With the price cap currently at £1,758, it’s unlikely that it will come down by the full £150 to £1,608. It may be set more in the region of British Gas’s latest prediction of £1,645.

Customers don’t have to wait to save

Whatever the price cap ends up being set at, it won’t come into effect until 1 April, and even if the full £150 is taken off to make it £1,608, there are cheaper deals on the market now that customers on standard variable tariffs could switch to.

Run an energy comparison by clicking below to see what’s currently available.