Not covered by the energy price cap? What UK households need to know

Not covered by the energy price cap? What UK households need to know

Most people in Great Britain have heard of the energy price cap, but far fewer know that it does not apply to everyone. If you are on a fixed energy tariff, get your heat from a heat network, or rely on heating oil or LPG, the cap offers you no direct protection — and rising wholesale gas prices could affect your costs in ways that are quite different from the standard experience.

On 28 April 2026, Ofgem published guidance specifically for consumers who fall outside the energy price cap, in the context of ongoing volatility linked to the situation in the Middle East. Here is what that guidance means in plain terms.

What's happening

The energy price cap is a regulatory limit set by Ofgem every three months. It restricts how much energy suppliers can charge per unit of gas and electricity on standard variable tariffs — tariffs where the unit rate can go up or down depending on the energy market. As of late April 2026, unit rates and standing charges on those tariffs are protected from wholesale gas cost rises until the end of June 2026.

However, the cap only covers standard variable tariffs. It does not apply to:

• Fixed tariffs — where you agreed a set rate with your supplier for a defined period
• Non-domestic energy contracts — used by businesses, charities, and residents of some alternative homes
• Heat networks — centralised heating systems that supply multiple properties from one source
• Heating oil and LPG — fuels used by off-grid households not connected to the gas network

Wholesale energy prices have been rising, and Ofgem's guidance is intended to help consumers in these groups understand how and when those rises might reach their bills.

Why it matters

Energy companies typically buy gas and electricity ahead of when they need it, which creates a buffer between market movements and what consumers actually pay. That buffer is why price changes are rarely instant — but it is not permanent.

For heat network residents, rising wholesale gas prices may feed through to heating bills more directly than for standard tariff customers, though in many cases the impact will be delayed because the network operator has already bought energy in advance. When those forward contracts end or are renegotiated, costs can rise. Some regulated costs — such as network charges — may also change depending on contract terms.

For fixed tariff customers, the rate you pay is locked in by your contract, not by the price cap. That can work in your favour when market prices rise, but it also means you will not automatically benefit if the cap falls below your fixed rate. When your fixed deal ends, the rate you move to will reflect market conditions at that time.

For heating oil and LPG users, the situation is more immediate. These fuel prices are set directly by fuel markets and are not regulated by Ofgem. They can change quickly and vary by location, season, and the timing of your delivery. In Great Britain, heating oil regulation sits outside Ofgem's remit entirely.

Who is affected

Ofgem's guidance is aimed at a broad group of consumers who are often overlooked in mainstream energy coverage:

• Households on fixed energy tariffs with any supplier
• Residents of park homes, houseboats, or other alternative accommodation that use non-domestic contracts
• People whose homes are connected to a heat network rather than having individual boilers
• Off-grid households using heating oil or LPG as their primary heating fuel
• Businesses and charities on non-domestic contracts, though the primary consumer focus here is residential

If you are unsure which category applies to you, check your energy bill or contract. The tariff type is usually stated clearly on your bill or in your online account.

What to do next

If you use heating oil or LPG, be aware that prices can move quickly. The Competition and Markets Authority (CMA) — not Ofgem — oversees consumer protection and competition law in the heating oil sector. You can find out how the CMA is protecting heating oil customers on the CMA's website. The government has also announced plans to increase the Boiler Upgrade Scheme (BUS) grant for households and businesses replacing oil or LPG heating systems with alternatives. Details of the increased grant are available on GOV.UK.

If you are on a heat network, contact your heat network operator to ask how they purchase energy and when their current supply contracts are due for renewal. This will give you a clearer picture of when any wholesale price rises might affect your bills.

If you are on a fixed tariff, note your contract end date. When your deal expires, you will move to a standard variable tariff unless you actively choose a new deal. Comparing available tariffs before your contract ends can help you avoid being rolled onto a rate that does not suit you. You can compare household energy tariffs at Taupia to see what is currently available.

If you are on a standard variable tariff, the price cap does apply to you, and your unit rates and standing charges are protected until at least the end of June 2026. The cap is reviewed quarterly, so the rate you pay may change after that date.

Sources

• Ofgem – Understand your energy costs if you are not protected by the energy price cap (published 28 April 2026)