The energy price cap does not cap your total bill
£1,862 is not the most any household can pay. It is an illustration based on typical use. The cap controls the rates, so using more still costs more.
By Graeme · 1 August 2026 · 6 min read
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From 1 July to 30 September 2026, Ofgem’s headline price-cap figure is £1,862 a year for a typical dual-fuel household paying by Direct Debit. A home can still pay much more or much less.
Why it is not a cap on the bill
Ofgem limits the unit rate for each kilowatt hour and the daily standing charge on a default tariff. The £1,862 figure applies those rates to an assumed amount of gas and electricity. It is a comparison tool, not a maximum invoice.
- Use more energy and the bill can be higher than £1,862.
- Use less and it can be lower.
- A fixed tariff follows the contract rate instead of changing with this cap period.
The current rates
13% higher
the typical-use cap illustration from July 2026 compared with the previous quarter
Ofgem's typical annual figure is £1,862 for July to September 2026.
The average Direct Debit rates used by Ofgem are 26.11p per kWh for electricity and 7.33p for gas. Actual regional rates differ, and prepayment or paying on receipt of a bill can produce different numbers.
The standing charge
A standing charge is paid for each day the supply is connected, even if almost no energy is used. The July 2026 averages are 57.19p a day for electricity and 29.04p for gas. That is roughly £315 a year before buying a unit of energy.
Why turning everything off cannot make the bill zero
Cutting use reduces the unit part. It does not remove the standing charge. That matters most to a low-use household because the fixed daily amount takes a larger share of the bill.
Who the cap covers
The cap covers domestic default tariffs in Scotland, England and Wales. It does not set the price of heating oil, bottled gas or communal heat networks. A fixed deal is also governed by its contract while it lasts.
Check the tariff name, payment method, unit rates and standing charges on the bill. Do not compare only the monthly Direct Debit: suppliers can change that payment to catch up with debt or build credit even when the tariff rates stay the same.
If you cannot afford energy
- Contact the supplier early and ask for an affordable repayment plan.
- Ask whether grants, hardship funds or the Warm Home Discount apply.
- Give meter readings so estimates do not hide the real position.
- In an immediate emergency, check the Scottish Crisis Grant.
Lower inflation does not undo the price rises already built into energy, food and rent. Read why prices stay high when inflation falls.
Energy rules are set at Westminster
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