Changes to energy price cap

Energy prices are changing

Ofgem, the energy industry regulator, has announced that from Wednesday 1 July  2026, the price cap on gas and electricity prices is increasing by 13%. 

The energy price cap sets the maximum amount that suppliers can charge for each unit of gas and electricity and for standing charges. 

People will see an increase of around 5% on their electricity bills, but gas bills are increasing by 24%. This is because global gas prices have gone up, so gas bills are rising faster. Electricity is less affected because more power now comes from renewables like wind and solar.

From Wednesday 1 July 2026, the price of electricity is rising to 26.11p per kilowatt hour (kWh), up from the current 24.67p. Gas prices will rise to 7.33p per kWh, up from the current 5.74p.

Standing charges - a fixed daily charge that covers the cost of connecting to the supply - are broadly the same, changing from 29.09p to 29.04p for gas, and from 57.21p to 57.19p for electricity. Standing charges vary by region.

How does this compare to the previous energy price cap?

Since its last energy price cap announcement, Ofgem has adjusted its Typical Domestic Consumption Values (TDCV) - its assumption about the amount of energy a typical household uses. This means its new estimate of a typical household’s annual bill – £1,663 for a typical household paying by direct debit for gas and electricity, or an increase of 1.34%  - can’t be compared directly with previous estimates. 

However, if we were to use the previous TDCV and compare this to its previous annual estimate of £1,641, it would show an annual estimate of £1,862 - an increase of 13%, or an extra £18 a month.

What does this mean for your bills?

It's important to remember that what you will pay depends on: 

• how much energy your household uses
• how you pay your bill
• the type of meter you have; and
• the tariff that you’re on. 

So, if you need to use more energy – because you have a large family, or you have a health condition that means you need to have a warmer home – your bills will be higher than Ofgem’s estimate of an annual bill.

We may not feel a big increase in our bills straight away because we generally use less electricity and gas during the summer months. If prices remain high as we go into autumn and winter, however, we are likely to see our bills increasing. The next price cap announcement is expected towards the end of August; this will cover the period 1 October to 31 December, when we all use more energy at home.

What should you do next?

Check your energy bill to see if you’re on the best tariff for your situation. You may also wish to consider fixing your tariff. It’s often worthwhile to ‘shop around’ as you might get a better energy deal from a different supplier too. 

Read about how to get the best deal for your energy, which includes information on how to understand your energy bill.

Easy ways to save energy

Not all energy-saving home improvements are expensive and time consuming. There’s lots of easy and inexpensive ways you can cut your energy use and save money today - discover our top tips. You can also read our tips on how to stay warm at home for less.

Worried about winter?

If you’re struggling to keep on top of your energy bills and are worried about keeping warm at home this winter, you could be eligible for support from the Scottish Government’s Warmer Homes Scotland programme. More than 50,000 households have received help to install heating, insulation and more.

Read more about Warmer Homes Scotland.

Get help

If you’re worried about your energy bills, we’re here to help – call us on 0808 808 2282 or, if you’d rather speak to someone over email or WhatsApp, get in touch via our website contact form today.

Our friendly advisors are on hand to give you free, expert and impartial advice about ways you can reduce your bills and improve your home to make it more energy efficient. They can explore any funding available and offer specialist advice if you need additional support.

If you need help, don't delay - get in touch today. If you're struggling to pay your bills, help is available - find out where to turn for financial support.