February 2026 energy price cap to be announced this week - here’s what to expect

Ofgem will announce the new energy price cap this week. What can customers expect?

When will the February 2026 price cap be announced?

Ofgem will make its announcement on Wednesday 25 February.

When will the price cap come into effect?

Ofgem announces new price caps about six weeks before they come into effect. This price cap will come into effect on 1 April and run until 30 June.

A new price cap will begin on 1 July, to be announced at the end of May.

How much will the price cap be?

The price cap is widely expected to be lowered by around 7%. It’s currently set at £1,758, but could come down to around £1,635 per year for an average use household paying by Direct Debit. This is because the government has pledged to take an average of £150 off energy bills from 1 April, which is driving most of the decrease.

How is the price cap calculated?

Generally, the price cap is calculated according to wholesale energy prices during each price cap assessment period. If wholesale prices are high, the price cap is usually high - if prices are low, the price cap is lower.

This time, though, the £150 reduction is being made possible through green levies like the Energy Company Obligation and Renewables Obligation being removed (or partially removed) from customers’ bills, which reduces unit rates.

This should bring bills down by an average of £150, but it’s important to remember that this is just an average. The actual amount customers will save depends on how much energy they use - higher usage means higher savings and vice versa.

What should customers do?

If you’re on a standard variable tariff which is affected by the price cap, you might think that the cap coming down is good news, which is true. However, if you stay on a standard variable tariff, you have to wait until 1 April to see any savings. There are fixed deals available now that are priced lower than the price cap will likely come down to in April, so you can save even more now. You should run an energy comparison to see what’s available because you’re almost certainly overpaying for your energy.

If you’re on a fixed deal but you’re in the last 49 days of your contract, the same applies - when it ends, you’ll be rolled on to a standard variable tariff, so switch now (you won’t have to pay any exit fees) to avoid paying higher rates.

If you’re on a fixed deal but you have more than 49 days left, you can switch but you’ll have to pay exit fees. You can still switch if you want to, but factor in the impact of paying exit fees on the savings you might make. You might be better off staying put until you can switch for free.