Ofgem energy price cap changed in July 2026, raising gas and electricity prices

The energy price cap changed in July 2026, raising gas and electricity prices for households on standard variable tariffs. The Office for National Statistics (ONS), publishing its July 2026 inflation bulletin on 19 August 2026, said the rise in prices came mainly from changes to standard variable tariffs, where there was a change in the Office of Gas and Electricity Markets (Ofgem) energy price cap in July 2026¹. Ofgem estimated that for an average household paying by direct debit for dual fuel, this equates to an annual bill of £1,862, which is a rise of £221¹.

The ONS said the price cap rose in part because of higher wholesale energy prices, and that the 12-week assessment period Ofgem used to calculate the July to September 2026 (Quarter 3) cap ran from 18 February to 18 May 2026, making it the first assessment period where prices had been affected by the outbreak of the conflict in the Middle East¹. It said the increase was the largest rise in gas prices since October 2022, when UK consumers were initially exposed to the higher prices arising from the energy crisis relating to the war in Ukraine, and that gas prices are now at their highest level since March 2024¹.

In the inflation figures, gas prices rose by 14.7% in July 2026, compared with a fall of 7.2% a year earlier, and electricity prices rose by 3.6%, compared with a fall of 3.8% a year earlier¹. The 12-month rate for housing and household services was 4.1% in July 2026, up from 2.7% in June, with prices rising 0.9% in the month compared with a fall of 0.4% a year ago¹. The Consumer Prices Index including owner occupiers' housing costs (CPIH) rose by 3.1% in the 12 months to July 2026, up from 2.8% the previous month, and the Consumer Prices Index (CPI) rose by 2.9%, up from 2.6%¹.

Fair By Design, an independent organisation, said in a response published on 27 May 2026 that from 1 July the energy price cap would rise by £221 (13%), and that for millions of families on low incomes this would be a serious worry, with average bills around £820 more than before the energy crisis began². It said households who pay on receipt of bill, rather than by direct debit, pay around £143 more per year for their energy under the price cap². In a separate post published on 19 August 2026, it said that after the price cap took effect the standard credit premium would be £135 per year, and that less than half of people who pay by standard credit understand that they are paying a premium to do so³.

Why it matters for households

The cap limits the unit rates and standing charges that suppliers can charge on standard variable tariffs, so the July 2026 change fed directly into what households on those tariffs pay. The £1,862 figure is Ofgem's estimate for an average household paying by direct debit for dual fuel, and the £221 rise is measured against the previous level¹. Households paying on receipt of bill rather than by direct debit face a different figure: Fair By Design put the standard credit premium at around £143 per year under the price cap in May 2026², and at £135 per year after the cap took effect in its August 2026 post³. The two figures are not the same and the sources do not reconcile them.

The ONS figures show the effect on measured inflation rather than on individual bills. Gas prices rose 14.7% in July 2026 and electricity 3.6%, both compared with falls a year earlier¹. Housing and household services, particularly gas and electricity, made the largest upward contribution to the change in the CPIH annual rate between June and July 2026, partly offset by transport¹.

Energy prices in Northern Ireland are set in a separate market with no equivalent cap, so the July 2026 change described here applies to England, Wales and Scotland⁴.

What happens next

The ONS said its next release is due on 16 September 2026¹. Fair By Design said it had submitted a response to Ofgem's consultation on consumer outcomes as they relate to billing, published on 19 August 2026, and that the consultation is the first step in Ofgem's phased approach to implementing seven consumer outcomes, the first being that consumers receive accurate, timely, accessible and understandable energy bills³. It said it is calling on Ofgem to work with it and other consumer groups to identify minimum standards³. No date for the outcome of that consultation is given in the sources.