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 changing in July 2026
Ofgem announced that the new price cap will be £1,862 for a typical household1 from 1 July until 30 September 2026. This is an increase of £221.
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.
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 up on 1 July, in line with the new price cap. 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: The price cap doesn’t affect prices for fixed-rate tariffs. If you’re on a fixed-rate tariff, your prices won’t change until your current tariff ends.
You don’t need to do anything - we’ll update your prices for you on 1 July. 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 up in line with the price cap.
From 1 July, the cap for a typical Pay As You Go home2 will be £1,812 – that’s an increase of £215 over a year.
If you have a smart meter your prices will update automatically on 1 July
If you have a traditional meter your prices will update when you top up from 1 July
We’ll write to let you know how this affects you. Remember: your actual costs still depend on how much energy your home uses.
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
Fix your prices and get a free annual boiler service on us*
You might save by moving to one of our fixed-rate tariffs - and you can add on a free annual boiler service. Just head to your OVO app or online account to compare our tariffs and fix your prices.
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 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.
Get 2 hours free off-peak electricity
Exclusive to customers who’ve joined Beyond, our latest reward to help you save and go greener is 2 hours of electricity every week – on us. From 18 May to 2 August, you can pick your slots via the OVO app. 4
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 £1433 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 before the price cap changes
Make sure your bills are correct: send your meter reading by 30 June 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.
4 2 hours need to be selected weekly, smart meter, smartphone & app required. Payable as energy credit. Offer applies for home energy use only. EV charger, in-home battery or heat pump consumption excluded. A consumption limit of 1kWh per hour applies. Available from 18 May until 2 August 2026. Terms apply. For more information see ovoenergy.com/beyond
* 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 tariff 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.