Ofgem has announced the latest update to the energy price cap, affecting millions of households who pay by Direct Debit or are on default tariffs. From 1 January to 31 March 2026, the cap will result in an “annual cost for people who use electricity and gas and pay by Direct Debit [of] £1,758 per year,” a figure that is “1% or £20 lower” than the previous year, and “2% or £37 lower” when adjusted for inflation.
For electricity, those on a standard variable tariff will pay an average of 27.69 pence per kilowatt hour (kWh), with a daily standing charge of 54.75 pence. Gas will cost 5.93 pence per kWh, with a daily standing charge of 35.09 pence. All rates are “based on the average across England, Scotland and Wales and include VAT at 5%,” ensuring customers get a clearer view of their true costs.
A spokesperson for Ofgem commented: “Every 3 months we review and set a level for how much an energy supplier can charge for each unit of energy and daily standing charge, under the price cap.” They added, “The actual amount you pay will depend on how much energy your household uses, where you live and the type of meter you have.”
The regulator reminds consumers that they may save money by “changing your energy tariff or payment type” and encourages those struggling with bills to reach out: “Tell your energy supplier if you cannot pay your bills. They must help you if you ask. They could set up a repayment plan or provide you with emergency credit.”
Ofgem also confirmed plans for early 2026 to launch a Debt Relief Scheme, aiming to “support around 195,000 people who claim means-tested benefits.” The next review for the price cap will be released by 25 February 2026, covering April to June.
For more details and regional breakdowns, customers are advised to visit Ofgem’s website.
