Energy Price Cap Update: July 2026
Ofgem has announced a 13% increase to the energy price cap from 1 July to 30 September 2026. This means many households across the UK could pay more than £200 extra a year for their energy.
What does this mean in simple terms?
From 1 July, energy bills are going up again.
The energy price cap is increasing by 13%, which means millions of households on a standard variable tariff could end up paying more than £200 extra a year for their energy.
Electricity prices will rise from 24.67p to 26.11p per kWh and gas prices will increase from 5.74p to 7.33p per kWh. Standing charges will stay largely the same.
What makes this rise so unusual is that energy prices normally come down during the summer, when we use less heating. This time, the escalating conflict involving Iran has pushed up the cost of buying energy, so bills are rising at a time when households would usually expect them to fall.
For many households already struggling with the cost of living, this latest increase will make paying energy bills even harder.
Is now the time to fix your energy tariff?
What Is the Energy Price Cap and Why Does It Matter?
Energy Price Cap
Set by Ofgem, the price cap limits the maximum amount that suppliers can charge per unit of gas and electricity. It’s designed to protect consumers from excessive prices, particularly those on standard variable tariffs. However, it’s important to note that the cap is not a total limit on your bill – actual costs depend on your usage. The cap merely restricts the price per unit and the standing charges.
The next one comes into effect from the 1st of July 2026. The cap is reviewed and updated every three months, and the next assessment for the period 1 October 2026 to 31 December 2026 will be published by 26 August 2026.
It’s important to remember that the price cap doesn’t set a total spending limit, it only caps the price per unit of energy and standing charges. Your actual bill still depends on your energy usage.
With energy prices set to rise sharply in July, now is the time to look at fixing your tariff. If you stay on a standard variable tariff, you could end up paying hundreds of pounds extra each year. It’s also important to take a meter reading before 1 July so your supplier charges your current usage at the lower rate. Smart meters usually send readings automatically, but it’s still worth checking.
Learn more about the Energy Price Cap update, including standing charges and unit rates for your region, here
What Free Home Energy Support Is Available?
At Green Energy Switch, we recognise the ongoing challenges that you may face in managing your energy bills. Every penny saved on your energy bills can help make a significant difference to your quality of life. That’s why we want to bring you as much support as possible help ease the burden.
Do you live in Fenland, Huntingdonshire, Cambridge City or East Cambridgeshire?
PECT (working in partnership with Cambridgeshire ACRE) can help you with its Cambridgeshire Home Energy Support Service (CHESS) thanks to funding from the Energy Industry Voluntary Redress Scheme. PECT is also offering this service to residents in Cambridge City in partnership with Cambridge City Council.
Do you live in Peterborough, South Cambridgeshire, or Rutland?
LEAP (Local Energy Advice Partnership) is a completely free energy advice service, helping you to stay warm and save money on your energy bills. We are proud to deliver the LEAP service for residents in Peterborough, South Cambridgeshire, and Rutland, in partnership with the local councils. Find out more below.
Looking for Support Outside These Areas?
LEAP is a nationwide service, so if you live outside these areas, make sure to check if LEAP is available in your region and take advantage of the free support on offer.
See all local energy grants and support available here
LEAP (Local Energy Advice Partnership)
What LEAP Offers:
Free Home Visits: Our Home Energy Advisors conduct completely free home visits, which often lead to referrals for income maximisation services or assessments for larger energy efficiency measures and appliances. These are done in the comfort of your own home and at a time that suits you.
Free Energy-Saving Advice: Our Home Energy Advisors also provide free assessments and energy-saving advice over the phone, making it accessible for those who may not be able to schedule a home visit. Our experts offer practical tips and recommendations tailored to your circumstances, empowering you to make informed choices about your energy usage.
Free Energy-Saving Measures: You can receive free energy-saving measures such as LED light bulbs, draught excluders, radiator panels, and more. These simple yet effective interventions can lead to significant savings on your energy bills while also reducing your carbon emissions.
Eligibility:
LEAP is open to all types of householders – homeowners, private renters and social housing tenants.
You may be eligible for the LEAP service if you meet the following criteria:
- You have a low income (less than £31,000)
- You receive Universal Credit
- You receive Housing Benefit
- You receive an income or disability-related benefit
View full eligibilty here
ABOUT US
Green Energy Switch (GES) delivers a broad range of energy services across the UK; specialising in working with social landlords and local authorities. Established in 2006, GES is a subsidiary of environmental charity PECT. We gift-aid any profits to PECT to help fund their vital work. In doing so, we are the lead sponsor of their Forest project. So far over 131,000 trees have been planted, equating to a remarkable reduction of over 1,300 tonnes of carbon emission.
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