Energy price cap
Ofgem’s energy price cap limits what you pay for gas or electricity on a variable-rate tariff. Find out how it works – and how it affects your prices.
The price cap is going down in April 2026
Ofgem announced that the new price cap is £1,641 for a typical household1 from 1 April until 30 June 2026. This is a decrease of £117. The April price cap includes an additional discount to your energy prices provided by the government.
All about the price cap: the cap is set by Ofgem, the energy regulator. It affects the way energy suppliers can price their energy tariffs. The cap puts a limit on how much customers on variable tariffs pay for each unit of gas and electricity. It also sets a maximum standing charge – this is used to cover the cost of things like maintenance of pipes and meters.
All about the government discount: in addition to the price cap, the government is reducing some of the levy costs that make up your energy prices. These savings will be passed on to customers on all tariffs through their gas and electricity unit rates. You can find out more about this on the government website.
What this means if you pay monthly
If you're on a variable-rate tariff: Most customers on a variable tariff will see their annual costs go down on 1 April, in line with the new price cap and government discount. We’ll write to let you know how it affects you. Remember: your actual bills still depend on how much energy your home uses.
If you're on a fixed-rate tariff: All customers on fixed-rate tariffs will have a price decrease on 1 April in line with the government discount. We’ll send you an email or letter soon with your new estimated costs. Remember: your actual costs still depend on how much energy your home uses.
You don’t need to do anything - we’ll update your prices for you on 1 April. You’ll be able to see your new prices on your energy bills/statements and online account from the same date.
What this means if you're on Pay As You Go
All Pay As You Go prices are variable – which means most customers' will see their annual costs go down in line with the price cap and government discount.
From 1 April, the cap for a typical Pay As You Go home2 is £1,597 – that’s a decrease of £114 over a year.
If you have a smart meter your prices will update automatically on 1 April
If you have a traditional meter your prices will update when you top up from 1 April
We’ll write to let you know how this affects you. Remember: your actual bills still depend on how much energy your home uses.
Useful to remember:
If your home uses more energy, your costs can change.
The price cap doesn’t put a limit on the total cost of your energy. Instead, it limits the amount you pay per unit of gas or unit of electricity – and for your daily standing charge. It can be helpful to think of it like filling up a car with petrol. The price per litre stays the same, but the total cost changes – depending on how much you fill up.
Ways to save
Get rewards with Beyond
Beyond rewards you for being with us by unlocking ways to save and bank rewards – free and exclusive to customers with smart meters that pay by Direct Debit, in the OVO app.
Earn credits by using off-peak energy
So far, customers have earned over £3 million by using energy at greener times of the day. Unlock Beyond and sign up to Power Move. Terms and eligibility criteria apply.
Get a smart meter installed for free
See your home’s energy use in real time and spot ways to save with a smart meter online. You’ll also unlock money-saving offers and rewards like Power Move.
Prices are lower with a Direct Debit
On average, customers save £1313 a year by choosing Direct Debit. You can set one up on your OVO app or online account. We'll review your Direct Debit regularly to make sure it covers your energy costs and that you're paying the right amount.
Send a reading for more accurate bills
Make sure your bills are correct: send your meter reading by 31 March in your OVO app or online account.
If you need financial support, we’re here to help
Our OVO Extra Support includes financial and practical support. It offers customers extra help with bills, free home efficiency kits, or debt support. In the last 12 months, we've helped over 5,000 homes, totalling over £15 million. You can find out more and apply online below.
Sources and references
1 Figures are for how much energy customers paying by Direct Debit typically use (11,500 kWh for gas and 2,700 kWh for electricity). This will vary based on actual household use.
2 Figures are for how much energy customers on Pay As You Go typically use (11,500 kWh for gas and 2,700 kWh for electricity). This will vary based on actual household use.
3 This saving is based on a typical domestic dual fuel customer who uses on average 11,500 kWh for gas and 2,700 kWh for single-rate electricity, and will vary based on actual household use.
* Terms and eligibility criteria apply - you must be a dual fuel homeowner and pay by Direct Debit. Not available for existing CORGI HomePlan and OVO Energy boiler cover customers. This plan automatically renews at the end of 12 months unless cancelled. This offer can be selected when choosing a fixed-rate tariff via your online account or our app and can only be redeemed once per household. We reserve the right to amend or withdraw this offer at any time.