July 2026 Energy Price Cap: £1,862 Equivalent and What to Do Next

Ofgem confirmed on 27 May 2026 that the UK energy price cap will rise by 13% from 1 July 2026.

On an equivalent-usage basis, that moves annual cost from £1,641 to £1,862. That is +£221 per year or about +£18 per month for households on standard variable tariffs (SVT).

Quick answer

• If you are on SVT, your tariff updates automatically on 1 July 2026.
• If you can lock a competitive fixed deal on your actual usage before then, you can avoid the reset.
• Timing matters: switching normally takes 17 working days, so acting before mid-June gives the best chance of being on the new tariff in time.

Jump to

• What changed on 27 May 2026?
• Who is affected by the July cap?
• Should you switch before 1 July?
• How to compare properly in 5 steps
• What happens next

What changed on 27 May 2026?

Ofgem confirmed that the cap period from 1 July to 30 September 2026 will be higher than the April to June period.

The key point is that the cap is not a cap on your total bill. It limits the maximum unit rates and standing charges suppliers can apply on default tariffs. Your total spend still depends on your own usage.

You will see two headline numbers in coverage:

• £1,862: the like-for-like comparison against the current cap using previous consumption assumptions.
• £1,663: Ofgem's new official headline using updated Typical Domestic Consumption Values.

Both are valid. If you are comparing quarter-to-quarter impact against today's cap, the equivalent figure is usually the clearest reference point.

Who is affected by the July cap?

The July change primarily affects households on standard variable tariffs.

Ofgem says around 33 million domestic accounts are in this group. If you are one of them, your tariff can update automatically from 1 July.

Households on fixed tariffs are different. Ofgem says around 22 million accounts are on fixed deals, so they are not directly affected by this specific cap reset while their fix is active.

Prepayment customers are also included in cap protections, and some smart-meter households may have additional time-of-use options depending on supplier and tariff availability.

Should you switch before 1 July?

For many SVT households, it is at least worth comparing now.

Why: if you do nothing on SVT, you accept the July reset automatically. If you compare and find a fixed deal that is better on your own usage profile, you can reduce annual cost and lower exposure to another cap change later in the year.

Timing is practical, not theoretical:

• Standard switching is typically 17 working days.
• Starting before mid-June usually gives the best chance of completion before 1 July.

If you are already on a fixed deal, check exit fees first. A simple test is whether expected savings from a new tariff are higher than the exit fee and any short-term friction.

If you want this done on real usage rather than generic assumptions, upload your bill to Taupia. Taupia reads your kWh and compares live tariffs in under a minute.

How to compare properly in 5 steps

1. Use your own annual gas and electricity usage in kWh from your latest bill.
2. Compare total annual cost, not headline unit rates alone.
3. Evaluate fixed options against your current projected SVT cost from 1 July.
4. Include standing charges, payment method differences, and any exit fees.
5. Prefer deals that still make sense if market conditions change.

A quick formula for apples-to-apples comparison:

(unit rate x annual kWh) + (standing charge x 365) + fees

If you want an even more detailed walkthrough, read what the July cap rise means for your specific bill.

What happens next

Ofgem's next cap announcement date is 26 August 2026, covering October to December 2026.

That means July is not just a one-off news cycle. It is a decision point before a potentially volatile second half of the year.

If your current tariff is uncompetitive, waiting usually reduces your options. Comparing now gives you a clearer baseline before the next reset window.