As experts warn energy prices could shoot up in July due to the ongoing conflict in the Middle East, we explain what’s happening to the energy price cap – and how you can cut your energy bills now.
Typical energy bills fell by 7% on 1 April 2026, when the energy price cap fell from £1,758 to £1,641. In a break from the norm, nearly everyone in England, Scotland and Wales saw bills fall, due to changes made by the government.
However, the energy price cap is forecast to rise by around £180 in July, following sharp increases in wholesale gas prices driven by the ongoing conflict in the Middle East.
Fixing your energy bill will protect against future energy bill hikes, although you could end up paying more overall if prices fall over the next year.
Other energy deals are available, such as discounted price cap tariffs, which typically offer a fixed discount on the price cap for 12 months. So compare your energy deal options today.
Energy bills went down by 7% when the new energy price cap, set by Ofgem, came into force on 1 April 2026.
Currently, a typical annual energy bill for a dual-fuel customer paying by direct debit is £1,641.
In an unusual move, households on fixed energy deals saw price drops in April too, due to changes to policy costs announced by the government, which includes scrapping the Energy Company Obligation scheme and moving some charges onto general taxation.
However, households have been warned that the energy price cap could shoot up by around £200 in July, due to rising wholesale energy prices linked to the ongoing conflict in the Middle East.
Energy bills latest news: How the Middle East conflict may impact bills
Wholesale energy prices have increased sharply since the start of the conflict in the Middle East.
British households on the price cap will not see an immediate effect on their bills, because the energy price cap for April to June has already been set by Ofgem, at an average £1,641.
However, households on the energy price cap are facing a sharp rise in energy bills from July, experts warn.
2026 energy price cap predictions
Here are the latest energy price cap predictions:
E.ON: E.ON’s energy price cap forecast made in May 2026 is for the price cap to jump to £1,852 in July 2026 and then increase to £1,871 in October 2026.
EDF: EDF’s gas and electricity prices forecast on 27 April 2026 is for the price cap in the UK to increase to £1,850 in July 2026 before going up again to £1,879 in October 2026.
British Gas: British Gas‘s forecast on 27 April 2026 is for the price cap in the UK to increase to £1,850 in July 2026 before increasing again to £1,870 in October 2026.
Cornwall Insights’ price cap predictionmade on 23 April 2026 is for the price cap to increase to £1,843 in July 2026.
In late February 2026, before the US-Israel conflict with Iran started, the energy price cap was predicted to remain around April’s price cap level for the rest of 2026.
How accurate are these energy price cap predictions likely to be?
The further ahead the forecast, the less likely it is to be accurate.
The volatility of global events currently playing out makes it even harder to make an accurate energy price cap prediction. In fact, for a period in March 2026, British Gas has stopped making predictions on what may happen with upcoming price caps due to wholesale energy prices changing every day.
Should I fix my energy bill?
Fixing your energy bill would give you certainty over how much you’ll pay on your energy bills. If you fix your energy bills you may be able to secure a rate lower than the current energy price cap and you’ll also be protected from the predicted hike in energy bills in July.
However, there is a risk that if energy prices fall over the term of your fixed tariff, you could end up paying more overall than someone who stayed on the price cap. If you’re considering a fixed tariff, check any exit fees for leaving the deal early.
Alternatives to fixing
There are also energy deals available that track under the energy price cap or that follow the energy price cap’s unit rates but have lower standing charges.
So make sure you shop around and switch energy suppliers as soon as possible if you find a better deal.
This table illustrates how much energy prices have changed in recent months:
Time period
Energy price cap amount
Old cap: 1 Apr – 30 Jun 2025
Up 6.4% to £1,849
Previous cap: 1 Jul – 30 Sep 2025
Down 7% to £1,720
Previous cap: 1 Oct – 31 Dec 2025
Up 2% to £1,755
Previous cap: 1 Jan – 31 Mar 2026
Up 0.2% to £1,758
Current cap: 1 Apr – 20 Jun 2026
Down 7% to £1,641
Current energy price cap rates in May 2026
If you’re one of the 21 million households in the UK on a standard variable tariff, here’s how the new price cap will change how much you pay:
PREVIOUS price cap rates from 1 Jan to 31 Mar 2026
CURRENT price cap rates from 1 Apr to 30 Jun 2026
Gas
Unit rate: avg. 5.93p per kWh Standing charge: 35.09p per day
Unit rate: avg. 5.74p per kWh Standing charge: 29.09p per day
Electricity
Unit rate: avg. 27.69p per kWh Standing charge: 54.75p per day
Unit rate: avg. 24.67p per kWh Standing charge: 57.21p per day
Am I on the energy price cap?
If you’re wondering if this affects you, the Ofgem price cap applies to around 21 million households on variable energy tariffs – so it sets what two thirds of homes in England and Wales will pay. You’ll know you’re affected if you are on a tariff called something like standard, flexible or variable rate rather than fixed.
How the energy price cap works
The energy price cap limits the unit rates and standing charges energy suppliers can charge for their standard tariffs.
However, the energy price cap figure – currently £1,758 per year- is based on the usage of a ‘typical’ household using gas and electricity and paying by Direct Debit.
It’s not the maximum you’ll pay. If you use more energy than a typical household, you’ll pay more than the price cap and if you use less, your bill will be lower.
If you fix your energy bill now, there are deals available lower than the current price cap, so you could save money now and avoid the predicted hike in energy costs in July. However, no one knows what will happen to the energy price cap in future months.
Whether switching to a fixed tariff is the best option for you will depend on your risk appetite and how good the deal is.
It’s also a good time to check for the best deal if you’re moving house, if your current supplier has poor customer service or you want a specialist tariff such as an EV tariff.
When comparing deals, check how long the fixed deal lasts for and whether you’ll need to pay an exit fee if you leave early.
Paula Higgins, Chief Executive of the HomeOwners Alliance, says: “People are rightly very concerned over predictions of how high the energy price cap may be hiked in July. We advise people to shop around and compare tariffs to ensure you’re on the best deal for you.”
Many households believe standing charges are unfair as they don’t have any control over how much they’re charged.
However, this move by Ofgem may not lead to big savings because these costs will be added to the unit cost of energy instead.
Also, some charities say the plans are complex and could leave some vulnerable customers to make the wrong choice.
Can I get help with energy bills?
Yes, some help is available for energy bills. For example, individual energy companies have hardship funds. Also, if you’re a pensioner and weren’t eligible for the winter fuel allowance last year, you may be eligible this year.
In March 2026, Chancellor Rachel Reeves said the government plans to help “those who need it most” if energy bills spiral due to the US-Israel war with Iran.
Detail of exactly who could be helped by the UK government and how remains unclear. We’ll update this page as soon as more information is released.
In June 2025, Chancellor Rachel Reeves confirmed that pensioners in England and Wales with an annual income of £35,000 or below will now be eligible – around nine million people.
More than 10 million pensioners had lost the payment, worth up to £300 last year, when it was paid only to those on pension credit. Find out more in our guide on Energy grants and how to get them.
Here are the historic price changes to Ofgem’s energy price cap, which shows how energy bills have increased and decreased in recent years.
Price cap period
Ofgem energy price cap
Price cap change vs previous period
October-December 2025
£1,755
+2%
July – September 2025
£1,720
-7%
April – June 2025
£1,849
+6.4%
January – March 2025
£1,738
+1%
October – December 2024
£1,717
+10%
July – September 2024
£1,568
-7%
April – June 2024
£1,690
-12%
January – March 2024
£1,928
+5%
October – December 2023
£1,834
-7%
July – September 2023
£1,976
-37%
April – June 2023
£3,116*
-23%
January – March 2023
£4,059*
20%
October – December 2022
£3,371*
80%
Summer 2022
£1,877
54%
Winter 2021/22
£1,216
12%
Summer 2021
£1,084
9%
Source: Ofgem data. *This was replaced by the £2,500 Energy Price Guarantee
How to keep energy bills low
Once you’ve shopped around for the best energy deal, the other way to save on energy bills is to use less. You can do this by:
Insulating your home: There are all sorts of ways you can make your home more energy efficient from relatively inexpensive and very effective options like installing loft insulation, to more expensive undertakings like fitting double glazing or replacing your boiler. See if you can get a grant for a boiler upgrade and whether you can access any other help with our guide on energy grants. For more information see also our guide on how to make your home more energy efficient.
Draught-proofing your home: Professional draught proofing of windows, doors and blocking cracks in floors and skirting boards can cost around £250, but can save around £45 a year on energy bills. DIY draught proofing can be much cheaper. For this and more affordable tips, see our guide on How to keep your house warm for less.
Turn down your thermostat: Turning it down by 1 degree could cut your heating bills by up to 10%. You can also cut your heating bills by installing certain heating controls. If you don’t already have a room thermostat, installing one could save up to £70 a year. And consider getting a smart thermostat, which allows you to control your heating from your smartphone or tablet.
