If your energy bill has jumped this month, it’s not just you. Ofgem confirmed on 27 May 2026 that the energy price cap would rise by 13% for the period covering 1 July to 30 September 2026, and that increase is now in effect. It’s one of the sharper quarterly rises in recent years, and it’s worth understanding exactly what’s driving it before deciding what, if anything, to do about it.
The price cap is the maximum a supplier can charge customers on a standard variable tariff (the default tariff you’re on if you haven’t fixed a deal). From 1 July, the rates behind it moved as follows:
| 1 April – 30 June 2026 | 1 July – 30 September 2026 | |
|---|---|---|
| Electricity unit rate | 24.67p/kWh | 26.11p/kWh |
| Electricity standing charge | 57.21p/day | 57.19p/day |
| Gas unit rate | 5.74p/kWh | 7.33p/kWh |
| Gas standing charge | 29.09p/day | 29.04p/day |
Standing charges are essentially flat. The increase is almost entirely down to unit rates, and gas has moved much more sharply than electricity. Ofgem’s own figures put the increase at around 5% on electricity bills against roughly 24% on gas bills, a gap it attributes to Great Britain’s growing share of renewable generation reducing reliance on gas to produce electricity.
The cause, according to Ofgem, is higher wholesale gas prices driven by the ongoing conflict in the Middle East, with wholesale prices up 28% over the past three months. To put it in context, the new cap remains 54% (around £2,197) below the peak of the 2022 energy crisis, when government intervention capped bills at £2,500.
You may see this rise reported as bills going to £1,862, or alternatively to £1,663. Both numbers come from Ofgem and both are correct, they’re just measuring different things.
Ofgem reviews how much energy an average household actually uses every few years (the Typical Domestic Consumption Values, or TDCV). Comparing the new rates against the old consumption assumptions gives a typical bill of £1,862, up from £1,641, which is where the 13% headline figure comes from. But Ofgem is also updating those consumption assumptions from 1 July, since typical households now use around 7% less electricity and 17% less gas than the previous benchmark assumed. Measured against that updated, lower baseline, the new typical bill works out at £1,663.
In practice, what you’ll actually pay depends on your own usage and tariff rather than either headline figure, but it’s worth knowing why you might see both numbers quoted.
The price cap only applies to standard variable tariffs. Around 33 million accounts are on one (roughly 19 million paying by direct debit, 7 million by standard credit, and 6 million on prepayment meters), and all of these will see the change. Around 21 million accounts are on fixed tariffs and are unaffected until that fix ends. If you’re not sure which you’re on, it’s worth checking your latest bill or supplier account before assuming this applies to you.
This matters if you’re still heating your home with a gas boiler. Because gas has risen much more sharply than electricity this quarter, the relative case for a well-designed heat pump has strengthened, especially when combined with support from the Boiler Upgrade Scheme (currently up to £9,000 for oil and LPG homes, £7,500 for others, we covered the detail in our guide to the BUS grant). Whether it makes sense for your specific property still depends on your current system design, insulation and running pattern.
Electricity prices are still rising too, just more slowly, which is exactly what solar panels and battery storage are designed to offset. Generating and storing your own electricity reduces how much you’re exposed to cap movements like this one, in either direction. Ofgem reviews the cap every three months, with the next announcement due on 26 August 2026 covering October to December, so this isn’t likely to be the last adjustment this year.
Rising bills are exactly the moment lots of installers lean on urgency to push a sale. We’d rather talk you through your actual usage, your roof, and your heating system, and give you an honest view on whether solar, battery storage or a heat pump makes sense for your property right now, or whether it doesn’t. We’ve been doing this across Essex and Kent for over 11 years.
Wondering what this price rise means for your own home? Book a free consultation and we’ll talk through whether solar, battery storage or a heat pump could realistically reduce your exposure to rising energy costs.
It depends on your tariff and your usage. If you’re on a standard variable tariff, expect a rise broadly in line with the 13% headline figure, though your actual bill depends on how much energy you use compared with Ofgem’s typical household assumptions.
Only if you’re on a standard variable (default) tariff. If you’re on a fixed-rate deal, this doesn’t apply until your fix ends.
Wholesale gas prices have risen sharply due to the conflict in the Middle East, and gas still sets the price for a large share of Great Britain’s electricity generation, though a growing share of renewables on the grid is reducing that link over time.
Ofgem reviews the cap every three months. The next announcement, covering October to December 2026, is due on 26 August 2026.
Last updated: June 2026. Based on Ofgem’s official price cap announcement (27 May 2026) and published unit rates for 1 July to 30 September 2026.
