Ofgem published the updated cap levels for charge restriction period 16b on 27 May 2026, covering the three months from 1 July to 30 September 20261. The Direct Debit annual bill level rose from £1,641 to £1,862, an increase of 13%1. Standard credit rose from £1,772 to £2,005 and prepayment from £1,597 to £1,812, both also 13%, while the Economy 7 Direct Debit figure rose 5%, from £1,108 to £1,1611.
The regulator said the wholesale cost allowance increased by 28% and now makes up 45% of the total price cap, against 40% in the previous quarter1. The gas wholesale allowance is going up by 50% and the electricity wholesale allowance by 9%1.
"The outbreak of war in the Middle East in late February has been the primary driver for wholesale market movements over the last three months."
Ofgem also confirmed a change to the typical domestic consumption values used to express the cap, from 2,700kWh of electricity and 11,500kWh of gas to 2,500kWh and 9,500kWh, effective 1 July 20262. On the revised figures the Direct Debit level is £1,663, up from £1,477, and standard credit £1,796, up from £1,5992. Ofgem stated that the change in consumption values does not itself affect consumer bills, and that the April to June rates remain unchanged2.
| Cap level | April to June 2026 | July to September 2026 | Change |
|---|---|---|---|
| Direct Debit | £1,641 | £1,862 | 13% |
| Standard Credit | £1,772 | £2,005 | 13% |
| Prepayment | £1,597 | £1,812 | 13% |
| Economy 7 (Direct Debit) | £1,108 | £1,161 | 5% |
Figures at 2023 consumption values1.
Which? reported that the increase amounts to around £18 per month for a typical household, with electricity rates rising by around 5% and gas rates by 24%3. The Energy and Climate Intelligence Unit put the extra cost attributable to wholesale gas price rises at £155 a year, of which about £130 is on the gas bill4. The House of Lords Library noted that domestic energy costs form 6% of total household expenditure on average, but 10% for the lowest income decile, and that energy debt has doubled since 2020 to £4.5bn5.
Why it matters for households
The cap limits unit rates and standing charges on default tariffs, not the total bill, so a household using more or less than the benchmark pays correspondingly more or less. The split matters: gas rates rose far more than electricity rates3, and gas drives heating demand in autumn and winter. Ofgem's own cost breakdown shows wholesale gas and electricity together taking a larger share of the cap, at 45% for Direct Debit, while networks fell from 28% to 25%1. For a household's energy independence, the exposure is to a wholesale price set by international events rather than by anything the household controls, and the payment method chosen changes the headline figure by hundreds of pounds a year.
What happens next
The new cap levels take effect on 1 July 2026 and run to 30 September 20261. Ofgem has published a technical consultation on an allowance to cover supplier costs of the Bill Discount Scheme, which supports funding of a government scheme providing discounts to households near new or upgraded electricity transmission1. Which? reported that the cap is expected to rise by another 2% in October, according to predictions by Cornwall Insight3. No government support in response to the current price rises has been announced3.
Sources5 cited
- Summary of changes to energy price cap 1 July to 30 September 2026, ofgem.gov.uk
- Summary of changes to energy price cap 1 July to 30 September 2026, ofgem.gov.uk
- I'm an energy expert: Here's how you can beat the soaring price cap right now - Which?, which.co.uk
- Energy & Climate Intelligence Unit | Price cap: US-Iran war set to…, eciu.net
- Electricity prices in Great Britain - House of Lords Library, lordslibrary.parliament.uk