Energy Price Cap Per kWh Explained (2026)

The energy price cap per kWh for a standard variable tariff paid by Direct Debit is 26.11 pence for electricity and 7.33 pence for gas, according to Ofgem, for the period 1 July to 30 September 2026. These per-unit rates are the part of the cap that limits what you pay, and they are the same across every source because the cap sets a maximum on the price of each unit, not on your total bill.

If you are on a default variable tariff and worried your bill is climbing, the per-kWh rate is the number to focus on. It tells you what you actually pay for the energy you use, separate from the confusing headline annual figures that keep changing. Free Price Compare sources these figures directly from Ofgem and Government publications so you can check your own tariff against the cap with confidence.

Last updated: July 2026

Written by the Free Price Compare editorial team | Reviewed July 2026

What the price cap actually limits

The energy price cap limits the maximum price your supplier can charge for each unit (kWh) of gas and electricity, plus the maximum daily standing charge, if you are on a standard variable (default) tariff. It does not cap your total annual bill. This is the single most common misunderstanding: the widely quoted annual figures are only an example based on a household using a set amount of energy, so a household that uses more will pay more than the headline number, and a household that uses less will pay less.

A standard variable tariff is the default deal you fall onto when a fixed contract ends or if you have never switched. Around 33 million accounts are on standard variable tariffs, according to Ofgem (27 May 2026), and only these tariffs are governed by the cap.

The standing charge is a fixed daily amount you pay to be connected to the gas and electricity network, regardless of how much energy you use. Under the cap for 1 July to 30 September 2026, the daily standing charge averages 57.19p for electricity and 29.04p for gas. You pay these charges every day even if you use no energy at all.

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Current energy price cap per kWh (July to September 2026)

For 1 July to 30 September 2026, the energy price cap per kWh is 26.11p for electricity and 7.33p for gas on a standard variable tariff paid by Direct Debit, according to Ofgem. These are national averages across England, Scotland and Wales and include VAT at 5%. The daily standing charges over the same period average 57.19p for electricity and 29.04p for gas.

Figures are indicative national averages for Direct Debit and may change at the next review.

To estimate your own cost, multiply your kWh used by the unit rate and add the daily standing charge for each day in the period. For example, using 100 kWh of gas in a month costs around £7.33 in usage, plus roughly £8.71 in standing charges for a 30-day month, before your electricity is added.

Why gas rates rose more than electricity in July 2026

Gas unit rates rose by around 24% while electricity rose by around 5% from 1 July 2026, driven mainly by higher wholesale gas prices, according to Ofgem (27 May 2026). Wholesale prices rose by 28% over the three months before the July review, and wholesale energy accounts for roughly 45% of a typical bill on the cap.

The gas unit rate of 7.33p per kWh is its highest point since March 2024, while the electricity rate of 26.11p per kWh reached a level not seen in a July cap since 2023. Standing charges barely changed at this review.

The July cap remains well below the peak of the 2022 energy crisis. Ofgem notes prices are around 54% lower than when the Government stepped in to cap typical bills at £2,500, though adjusted for inflation the current cap sits about 6% higher than the same period in 2025. For more background on what pushes these rates up and down, see our explainer on why gas bills are so high.

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See what recent cap changes mean for UK households

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Why your bill can look higher than the headline cap

Your bill can exceed the headline cap figure because the cap limits price per unit, not total spend, so heavy users pay more than the example household. The commonly quoted annual figures assume a typical household uses a fixed amount of gas and electricity. Ofgem changed its Typical Domestic Consumption Values on 1 July 2026, lowering assumed usage to 2,500 kWh of electricity and 13,600 kWh of gas a year, which makes the example annual figure look lower even though unit prices are unchanged.

This is why the same July 2026 cap is quoted as different annual totals across sources: some use the older, higher assumed usage and others use the new, lower assumption. The per-kWh rates of 26.11p and 7.33p are consistent everywhere because they are the genuine cap. If you use more than the assumed amounts, your bill will be higher, and that does not mean your supplier is overcharging.

There are legitimate reasons a unit rate on your bill can differ from the national average: your distribution region, your payment method, and whether you are on a multi-rate meter such as Economy 7. If your rate exceeds the regional cap for your area and tariff, contact your supplier, and if it is not resolved you can raise it with the relevant consumer body or Citizens Advice.

How the cap changes by region and payment method

The energy price cap per kWh varies across 14 distribution regions, and how you pay also changes your rates. The published 26.11p electricity and 7.33p gas figures are national averages; your actual capped rate depends on where you live because it costs different amounts to transport energy to different parts of Great Britain.

Standing charges show the widest regional spread. For a typical Direct Debit household from 1 July 2026, annual electricity standing charges range from around £271 in the London region to around £366 in North Wales and Merseyside, according to industry figures citing Ofgem. Northern English regions and Merseyside tend to carry the highest standing charges.

Payment method also matters. Prepayment customers face a slightly different cap, and paying on receipt of a bill (cash or cheque) is more expensive per year than Direct Debit for typical use. Direct Debit is usually the cheapest way to pay under the cap. If you want to see how switching payment method or supplier could reduce your costs, you can compare ways to save on your energy bills.

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Should you fix or stay on the price cap?

Whether to fix or stay on the price cap depends on how a fixed tariff’s unit rates compare with the current cap and how long the fix lasts. A fixed tariff sets your per-kWh rates and standing charges for a set period, usually 12 months, so you are protected if the cap rises but you will not benefit if it falls. Around 40% of accounts, roughly 22 million, are already on fixed tariffs and are not affected by cap changes, according to Ofgem (27 May 2026).

The next cap, for 1 October to 31 December 2026, will be published by 26 August 2026. Independent forecasters have suggested the October cap could be broadly flat versus July, but these are predictions, not confirmed figures, and should be treated as such until Ofgem announces the actual rates.

A practical rule: if you can find a fixed deal with per-kWh rates at or below the current cap, no large exit fees, and a term that covers a period forecasters expect prices to hold or rise, fixing removes uncertainty. If the only fixes available are clearly above the cap, staying on the variable cap keeps your options open. Always compare the per-kWh rates and standing charges of any fix against the cap figures above, not just the headline annual estimate.

How to check and use your unit rate

You can find your unit rate and standing charge on your energy bill or in your online account, usually shown in pence per kWh and pence per day. Compare these directly with the cap rates of 26.11p (electricity) and 7.33p (gas) for July to September 2026 to see whether you are on the standard variable cap or a different tariff.

• Find your current unit rates and standing charges on your latest bill or online account.
• Note your annual kWh usage for gas and electricity, also shown on your bill, so you can estimate real costs rather than relying on the example household figure.
• Send regular meter readings so you are billed on actual usage, not estimates, which prevents surprise catch-up charges.
• Compare fixed deals by their per-kWh rates and standing charges, not just the advertised annual saving.

Sending a meter reading does not change your unit rate, and withholding one does not save money; it only affects whether you are billed on actual or estimated usage. If you are struggling to pay, contact your supplier early, as all suppliers must offer support such as payment plans, and check whether you qualify for the Warm Home Discount.

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• Why Are Gas Bills So High? Understanding the Energy Price Cap
• Why is there an energy crisis in the UK? | Free Price Compare
• Understanding the Energy Price Cap Falls – FreePriceCompare
• Impact of Energy Price Changes on UK Households
• Maximizing Savings on Household Energy Bills: A Guide

Information correct as of 2 July 2026. Prices, tariffs, policy details and providers change frequently, so please check the latest details before making a decision. This article is for general information only and does not constitute financial advice. Free Price Compare is authorised and regulated by the Financial Conduct Authority (FCA).