The energy price cap for the second quarter of 2026 has been set by Ofgem at £1,730 per year for a typical household — down from £1,849 in Q1, following a modest fall in wholesale gas prices.
That headline figure represents a significant fall from the £2,500 cap of 2022-23, but remains 45% above the pre-crisis level of around £1,200.
What the Price Cap Actually Means
The cap is not a limit on your total bill — it is a limit on the unit rates energy suppliers can charge. If you use more energy than the "typical" 2,900 kWh of electricity and 12,000 kWh of gas assumed in the calculation, you will pay more than £1,730.
The typical household figure covers a three-bedroom house with moderate heating and appliance use. A large detached house will pay substantially more; a well-insulated flat will pay substantially less.
The Most Effective Ways to Reduce Your Bills
Switch to a fixed tariff: Some suppliers now offer fixed deals below the current cap for one or two years. If you believe wholesale prices will rise — a reasonable expectation given global gas market volatility — fixing now has value.
Loft insulation: The single most cost-effective home improvement. Government grants under the Great British Insulation Scheme cover the full cost for households on means-tested benefits and most of the cost for many others. A properly insulated loft saves £300-£400 per year on heating.
Heating controls: A smart thermostat, properly programmed, typically saves £150-£200 annually. The payback period on a £200 thermostat is under eighteen months.
Check your meter readings: Bills based on estimates can either overcharge or undercharge. Providing actual readings ensures you pay for what you use.
Households Entitled to Support
The Warm Home Discount scheme provides a £150 rebate on electricity bills to eligible households — primarily those on pension credit or means-tested benefits. The Cold Weather Payment provides additional support during periods of sustained cold weather.
