What is the Ofgem energy price cap?

The Ofgem price cap sets a maximum unit rate and standing charge that energy suppliers can charge for default tariffs. It changes quarterly and applies to both gas and electricity. Check Ofgem's website for the current cap level.

How can I reduce my energy bills?

Key ways to reduce energy bills include: improving home insulation, turning down your thermostat by 1°C (saves around £100/year), using LED bulbs, washing clothes at 30°C, only boiling the water you need, and switching to a cheaper tariff when your fixed deal ends.

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Estimate your annual gas and electricity bills using Ofgem price cap rates. See monthly and daily costs.

Last updated: April 2026 · Source: Ofgem — Energy price cap

Annual Electricity Usage (kWh)

UK average: ~2,700 kWh/year

Annual Gas Usage (kWh)

UK average: ~11,500 kWh/year

Estimated Annual Energy Bill

£1,779.41

£148.28/month

Electricity

£886.49/yr

Gas

£892.92/yr

Ofgem Price Cap rates (Q2 2025):

Electricity: 24.5p/kWh + 61.64p/day standing charge

Gas: 6.76p/kWh + 31.65p/day standing charge

Disclaimer

This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.

How It Works

Your energy bill is made up of two components: a daily standing charge and a unit rate for the energy you actually use. The standing charge covers the cost of maintaining your connection to the gas and electricity networks. The unit rate is the price per kilowatt-hour (kWh) of energy consumed.

The Ofgem energy price cap sets the maximum unit rates and standing charges that suppliers can charge on default tariffs. The cap is updated quarterly. Typical household consumption is approximately 2,700 kWh of electricity and 11,500 kWh of gas per year.

This calculator lets you enter your actual meter readings or estimated consumption to see your expected annual bill. You can compare different tariff rates to see potential savings from switching.

Example: Average household consumption

Electricity: 2,700 kWh × 24.5p = £661.50
Electricity standing charge: 365 × 61.64p = £224.99
Gas: 11,500 kWh × 6.76p = £777.40
Gas standing charge: 365 × 31.65p = £115.52
Total annual bill: ~£1,779

Source: Ofgem — Energy price cap

Frequently Asked Questions

What is the Ofgem energy price cap?: The Ofgem price cap sets a maximum unit rate and standing charge that energy suppliers can charge for default tariffs. It changes quarterly and applies to both gas and electricity. Check Ofgem's website for the current cap level.
How can I reduce my energy bills?: Key ways to reduce energy bills include: improving home insulation, turning down your thermostat by 1°C (saves around £100/year), using LED bulbs, washing clothes at 30°C, only boiling the water you need, and switching to a cheaper tariff when your fixed deal ends.