27 May 2026
July 2026 Energy Price Cap: £1,862 Equivalent and What to Do Next
Ofgem confirmed a 13% rise from 1 July 2026. See the confirmed cap figures, who was affected, and how the cap moved again on 1 October 2026.
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Reviewed by Margaux Carluer on 21 August 2026
Which price cap applies when
From 1 October 2026 to 31 December 2026: the October to December 2026 cap applies, £1,935 a year on the like-for-like basis, or £1,723 on Ofgem's current measure. It replaced the July to September 2026 cap of £1,862, or £1,663. Ofgem publishes the January to March 2027 cap on 25 November 2026. Full history: UK energy price cap guide.
Quick answer
Ofgem confirmed on 27 May 2026 that the cap for 1 July to 30 September 2026 would rise 13%. On equivalent usage, costs went from £1,641 to £1,862 (+£221/year, around +£18/month), or £1,663 on Ofgem's new typical-use measure. From 1 October to 31 December 2026 the cap is £1,935 on the like-for-like basis, or £1,723 on Ofgem's measure.
Ofgem confirmed on 27 May 2026 that the UK energy price cap would rise by 13% from 1 July 2026, for the period 1 July to 30 September 2026.
On an equivalent-usage basis, that moves annual cost from £1,641 to £1,862. That is +£221 per year or about +£18 per month for households on standard variable tariffs (SVT).
| Key facts (confirmed 27 May 2026) |
|---|
| New cap from 1 July 2026 (equivalent basis): £1,862/year |
| Ofgem new official headline: £1,663/year (updated consumption assumptions) |
| Cap it replaced (Apr-Jun 2026): £1,641/year |
| Change: +13% / +£221 per year / +£18 per month |
| Accounts on SVT (affected): ~33 million |
| Accounts on fixed tariffs (not directly affected): ~22 million |
| Typical switching timeline: up to 5 working days |
| Following cap announcement: 26 August 2026 (for October to December 2026) |
Quick answer
- If you are on SVT, your tariff updates automatically on 1 July 2026.
- A competitive fixed deal on your actual usage takes you off the cap's quarterly resets for the length of the deal.
- Timing matters: suppliers must complete a switch within five working days, so allow five working days, plus any bank holidays, before a cap change you want to beat.
Jump to
- What changed on 27 May 2026?
- Who is affected by the July cap?
- Should you switch or stay on the cap?
- How to compare properly in 5 steps
- What happens next
What changed on 27 May 2026?
Ofgem confirmed that the cap period from 1 July to 30 September 2026 will be higher than the April to June period.
The key point is that the cap is not a cap on your total bill. It limits the maximum unit rates and standing charges suppliers can apply on default tariffs. Your total spend still depends on your own usage.
You will see two headline numbers in coverage:
- £1,862: the like-for-like comparison against the April to June 2026 cap using previous consumption assumptions.
- £1,663: Ofgem's new official headline using updated Typical Domestic Consumption Values.
Both are valid. If you are comparing quarter-to-quarter impact against the April to June cap, the equivalent figure is usually the clearest reference point.
Who is affected by the July cap?
The July change primarily affects households on standard variable tariffs.
Ofgem says around 33 million domestic accounts are in this group. If you are one of them, your tariff can update automatically from 1 July.
Households on fixed tariffs are different. Ofgem says around 22 million accounts are on fixed deals, so they are not directly affected by this specific cap reset while their fix is active.
Prepayment customers are also included in cap protections, and some smart-meter households may have additional time-of-use options depending on supplier and tariff availability.
Should you switch or stay on the cap?
For many SVT households, it is at least worth comparing.
Why: if you do nothing on SVT, you accept each cap reset automatically, as on 1 July and 1 October 2026. If you compare and find a fixed deal that is better on your own usage profile, you can reduce annual cost and lower exposure to another cap change later in the year.
Timing is practical, not theoretical:
- Standard switching takes up to five working days, and you can ask to be switched on a later date.
- For the July change, starting by around 24 June gave the best chance of completion before 1 July.
If you are already on a fixed deal, check exit fees first. A simple test is whether expected savings from a new tariff are higher than the exit fee and any short-term friction.
If you want this done on real usage rather than generic assumptions, upload your bill to Taupia. Taupia reads your kWh and compares live tariffs in under a minute.
How to compare properly in 5 steps
- Use your own annual gas and electricity usage in kWh from your latest bill.
- Compare total annual cost, not headline unit rates alone.
- Evaluate fixed options against your projected SVT cost at the cap rates.
- Include standing charges, payment method differences, and any exit fees.
- Prefer deals that still make sense if market conditions change.
A quick formula for apples-to-apples comparison:
(unit rate x annual kWh) + (standing charge x 365) + fees
If you want an even more detailed walkthrough, read what the July cap rise means for your specific bill.
What happens next
Ofgem confirmed the next cap on 26 August 2026, covering 1 October to 31 December 2026: £1,935 on the like-for-like basis, or £1,723 on Ofgem's current measure. See the confirmed October figures. The following announcement, for January to March 2027, is scheduled for 25 November 2026, and Cornwall Insight's first forecast for it is in our January 2027 forecast.
That means July is not just a one-off news cycle. It is a decision point before a potentially volatile second half of the year.
If your tariff is uncompetitive, waiting usually reduces your options. Comparing gives you a clearer baseline before the next reset.
Key takeaways
- On an equivalent basis, the cap rose from £1,641 to £1,862 (+£221/year) for July to September 2026.
- The £1,663 headline uses updated typical consumption assumptions.
- SVT households moved to the July rates automatically on 1 July 2026.
- From 1 October to 31 December 2026 the cap is £1,935 like-for-like, or £1,723 on Ofgem's current measure.