The energy price cap is going down
Good news! Energy prices are going down, meaning all energy bills will be discounted from the 1st April.
Our fixed price tariffs are still cheaper than the April price cap, allowing you to lock in a low rate and save more.
Already with us? Access your online account to fix your prices.
Are you on a variable tariff?
Submit your meter reading to help make sure your bills are accurate.
In this article
How do Ofgem decide what the price cap will be?
What are the current price cap rates?
What do I need to know about the price cap?
When will my prepayment meter prices change
What is the energy price cap and how does it work?
The price cap, introduced by the government in 2019, limits the rates for customers on standard variable energy tariffs. The energy price cap is set by Ofgem every January, April, July and October. It places a maximum amount you'll pay per unit of energy you use, and the daily standing charge that covers the distribution cost of getting gas and electricity to your home.
It doesn't cap your total bill - the more energy you use, the more you'll pay.
How does Ofgem decide what the price cap will be?
Ofgem sets the price cap by working out how much it costs energy suppliers to supply you with gas and electricity. These costs cover things like buying wholesale energy, maintaining supply pipes as well as wiring and operating costs.
Energy price cap predictions1
We want to keep you informed, so here's a summary of our latest energy price cap predictions. Please note, this is for guidance only and isn’t guaranteed.
Want to know more about energy prices? Check out our handy explainer.
To find out more about future energy prices, Cornwall Insight is a trusted provider of forecasts for the Ofgem price cap.
Energy prices are going down on 1st April
Following Ofgem’s recent price cap announcement and action taken by the UK Government in the 2025 Budget, energy bills will be discounted from 1st April. Certain green levies that were previously added to energy bills will now be paid for by the government instead. This reduces the amount included in the price cap and helps lower bills. You can find more information on the government website.
As a result, the average household bill1 is expected to fall by around £117 a year. How much you save will depend on your energy use. The next price cap change will take place on 1st July 2026.
What can affect our energy price cap predictions?
Global events play a big role. For example, if the conflict in Ukraine or tensions in the Middle East escalate, wholesale gas prices could rise – which may lead to higher energy bills in the future.
Ofgem are also continuing to review how the price cap is calculated, and any future changes could affect prices.
We’ll update our forecasts every month so you can decide whether a fixed or variable tariff would be best for you.
Updated on 2nd March 2026 by:
Simon Wood
Head of Energy Pricing & Costing
| Period | Price cap predictions |
Confidence level |
|---|---|---|
| Q1 2026 starts 1 January | £1,758 | Confirmed |
| Q2 2026 starts 1 April | £1,641 | Confirmed |
| Q3 2026 starts 1 July | £1,710 | Low |
| Q4 2026 starts 1 October | £1,705 | Very Low |
| Q1 2027 starts 1 January | £1,715 | Very Low |
Energy bills are expected to remain high for the next few months. By choosing a fixed tariff, you’ll lock in your rates for the duration of your contract.
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What are the current price cap rates?
Select the payment option below and enter your postcode to find out your local Standard Variable Tariff price cap rates - the table to the right hand side will automatically update.
Direct Debit - January 2026 average price cap rates
- Gas standing charge
- 35.091p
- Gas unit rate
- 5.933p
- Electricity standing charge
- 54.748p
- Electricity unit rate
- 27.693p
Pay on Receipt - January 2026 average price cap rates
- Gas standing charge
- 42.909p
- Gas unit rate
- 6.248p
- Electricity standing charge
- 62.970p
- Electricity unit rate
- 29.227p
Pay As You Go - January 2026 average price cap rates
- Gas standing charge
- 35.086p
- Gas unit rate
- 5.722p
- Electricity standing charge
- 54.744p
- Electricity unit rate
- 26.840p
What do I need to know about the price cap?
The price cap doesn’t apply to fixed tariffs
If you’re on a fixed tariff, the price cap won’t affect you as your prices are locked in for the length of your contract. We won’t increase the price you pay, unless the government increases VAT.
You can check what tariff you’re on in your online account.
Send us monthly meter reads for accurate bills
It’s quick and easy using our app or in your online account.
We use your meter readings so we can send an accurate bill or statement based on your energy use. If we don't receive your readings, we'll make estimates based on typical energy use, which could result in a higher bill than necessary.
When will my Direct Debit change?
Your Direct Debit amount doesn’t adjust automatically when tariff prices change.
If price cap rates are going down, there may be other reasons why we may increase your Direct Debit payments, such as matching the cost of your ongoing average energy use. Also, if your account has a negative balance, we may increase your payments to get your account back to a positive balance.
When will my prepayment meter prices change
Electricity key meters
If you have a meter that you top up with a key at Payzone or Post Office, to get the new prices you need to top up on or after 1st April. Your meter will have the new prices once you've put the key back in your meter.
Pay As You Go smart meters
We know that some of our smart meters won't get the new prices no matter how much we try. If we can't fix yours after three months, we'll send you a cheque for anything you've been overcharged.
Smart Energy Monitors
Some Smart Energy Monitors (SEM) won't update with the new prices, so the estimated cost of energy they show will be wrong. Your bills and Direct Debits will be accurate with the new prices. We’ll keep trying to fix your SEM so it updates correctly.
What can I do to manage energy costs?
Reduce your usage to save energy and money on bills
The price cap limits the unit rates and standing charges, not your annual energy cost.
Here are some energy-saving steps you can take right away to improve the energy efficiency of your home without spending a penny.
Lock in your energy prices
Our fixed energy tariffs can provide peace of mind that your prices won't increase this winter. Check out all our available tariffs in your online account.
Help with your bills
If you need help paying your energy bills on time, there are a number of ways we can help you.
Save money with PeakSave
Earn money off your bills for making small changes to when you use electricity.
It’s cheaper by Direct Debit
Change the way you pay to Direct Debit, and you’ll pay a lower unit rate and standing charge.
Upgrade to smart meters
Easily see how much energy you're using at a glance, which can help you save money.
Legal information
Predicted prices based upon a customer paying by Direct Debit and Ofgem’s typical domestic consumption values (TDCVs) which are set at 2,700 kWh per year for electricity, and 11,500 kWh per year for gas. Our price cap predictions follow Ofgem’s price cap methodology, and we apply our forecasts of other costs to predict future price cap levels. Our prediction will change based on changes in the cost of wholesale energy for future periods.