Guide
Energy price cap July 2026: how much is it and how does it work?
The energy price cap limits the maximum amount energy suppliers can charge customers per unit.
Read guideEnergy comparison
Energy prices have increased by 12%. You can still fix energy today to avoid paying more and also protect yourself from right prices for the rest of the year.
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What does the new electricity VAT cut mean for you?
New rules mean the VAT charged on domestic electricity has been reduced. We break down what’s changing, when it starts and how much it could take off a typical annual bill.
Should I fix my energy today?
If you’re not on a fixed energy deal already, you should strongly consider fixing today. You could save against the July price cap by switching to a fixed deal — locking in rates for a year or more will also help you avoid high prices for at least the rest of the year.
If you haven’t already fixed your deal, run a comparison to see what’s on the market.
If you’re on a "standard variable" or "default" energy deal
You should strongly consider switching to a fixed deal. Standard variable rates track the price cap and can move every three months, so a fix gives you certainty over what you pay per unit and often costs less over a full year.
If you’re on a fixed energy deal with less than 60 days left
Start comparing now. You can usually lock in new rates up to 60 days before your contract ends without paying an exit fee, and you avoid rolling onto a more expensive default tariff.
If you’re on a fixed energy deal with more than 60 days left
You’ll likely have exit fees to pay. Check what they are — if the saving on a new fix is bigger than the exit fee, switching still makes sense. Otherwise, set a reminder for 60 days out.
If you’re on a fixed energy deal you’re happy with
Do nothing for now, but keep an eye on the market. Prices move quickly and it costs nothing to run a comparison every couple of months to make sure your deal is still competitive.
How do wholesale energy prices and the price cap affect my bills?
- Suppliers buy energy in bulk from the wholesale market. When those global prices rise, the cost of supplying your home rises with it.
- Ofgem’s price cap sets the maximum unit rate and standing charge suppliers can charge default tariff customers — it caps rates, not your total bill.
- From 1 July to 30 September, the price cap for Direct Debit customers is set at £1,720 a year for a typical household using medium amounts of gas and electricity.
- Although the price cap is described as a cap, it doesn’t cap your total bill. The cap is on the unit cost, so the more energy you use, the more you’ll pay.
- If you’re not on a fixed deal, you’re likely paying the maximum price for energy that it’s legal to charge — and fixing can protect you from the expected future bill hikes.
How much does energy currently cost?
You can see energy costs under the current price cap below. It’s worth remembering that standing charges are described as daily costs — you pay them regardless of how much energy you use.
| Electricity (July price cap) | Gas (July price cap) | |
|---|---|---|
| Unit rates | 25.73p per kWh | 6.33p per kWh |
| Standing charge | 51.10p per day | 29.82p per day |
Will energy prices fall soon?
Energy bills have already dropped this spring as the government moves green levies onto the ECO scheme and general taxation, saving households on both standard variable and fixed tariffs an average of £150 from April.
This reduction comes through in unit rates, so the actual amount that falls from your bill will differ depending on how much energy you use. However, energy prices are expected to fall gradually rather than sharply — protect yourself now by locking in a rate you’re comfortable with.
| Price cap level | Annual energy cost for an average usage medium-sized household paying by Direct Debit |
|---|---|
| 1st July to 30th September 2026 | £1,720 (est TBC/Ofgem) |
| 1st October to 31st December 2026 | £1,755 (predicted) |
| 1st January to 31st March 2027 | £1,701 (predicted) |
| 1st April to 30th June 2027 | £1,668 (predicted) |
| 1st July to 30th September 2027 | £1,655 (predicted) |
Expert advice
With eight in 10 households worried about their energy bills rising, there’s a real opportunity to protect yourself by locking in a fixed deal for 12 months or more that gives certainty on the price you’ll pay — especially over the coldest months.
“Not only can you save against the July price cap, but fixing now will also shield you from high prices for at least a year.”
How to choose the best energy deal for you
When you switch energy, there are a few things to remember.
- 1
Price
The price you see on our comparison pages is usually based on your estimated energy usage over a year. The lower the unit rate and standing charge, the less you pay — but check how much you’ll be charged for your actual usage.
- 2
Exit fees
If you want to leave a fixed deal after your 14-day cooling-off period, you might have to pay an exit fee for each fuel. Fixed deals with low or no exit fees give you flexibility if prices fall.
- 3
Deal length
Most deals run for between 12 and 24 months. During this time the price you pay per unit is locked in, so you know exactly what your rates will be even if the market rises.
Which is the cheapest energy supplier in the UK?
The cheapest gas and electricity supplier could be different for everyone. It depends on factors like how much energy you use, how much you pay at the moment, what your current deal is and where you live. When you compare energy suppliers with us, we show you the deals available for your home or business.
Compare energy deals
Fix for price certainty today. It takes just minutes to switch to a fixed deal.
How to compare energy prices
Comparing energy prices on our site takes a few minutes and could help you save on your energy bill.
1. Enter your postcode
Your postcode lets us show you the correct regional unit rates and estimates based on your usage. If you have a recent bill to hand, even better — accurate figures give accurate results.
2. Compare energy deals
You’ll see the deals available in your area, ranked on estimated annual cost, along with the tariff type, contract length, exit fees and supplier ratings.
3. Confirm your switch
Once you’ve found the deal you like, confirm your move and we’ll do the rest. Your supply is never interrupted and you don’t need to contact your old supplier.
When shouldn’t I switch energy?
You should potentially reconsider switching your energy deal if you have to pay an exit fee or penalty which is bigger than the potential savings you could make. Exit fees can be at least £50 per fuel and sometimes as much as £250, which is a huge amount to pay.
If you’re desperate to switch to a certain deal, work out how much you’ll save over the duration of the contract versus how much you’d pay to leave your current deal early.
3 things to do if you can’t switch
If switching isn’t right for you at the moment, there are other options to help make sure you’re not paying higher bills than you need to.
Track your energy usage
Connecting a smart meter or checking your bills monthly is the easiest way to spot rising costs early and act before your next renewal.
Submit regular meter readings
If you don’t have a smart meter, submitting regular readings makes sure you’re only charged for what you actually use, not an estimate.
Consider home energy efficiency upgrades
Insulation, draught-proofing and a more efficient boiler cut your bills every year, whatever tariff you’re on. Many improvements pay for themselves quickly.
Why choose Grow Your Business for energy?
Wide choice of deals
We compare a broad range of energy deals from suppliers across the UK, so you can find the right fit for your home or business.
Exclusive and cashback
We work hard to bring you exclusive deals, along with cashback and other incentives where you can get them.
Simple and fast
It takes just a few minutes to compare with us — and it could be lower than what you’re paying now.
Is an energy switch hassle-free?
Yes. Most suppliers are signed up to the Energy Switch Guarantee, which states that they agree to provide a quick and hassle-free switching experience. That means your new supplier will resolve any problems and your old supplier will refund any credit balance within 14 days of your final bill.
What are the different types of energy tariff?
When it comes to energy tariffs, there are more options available than ever. This means it’s easier for customers to ensure they’re not overpaying for their energy and choose the tariff type that best fits their lifestyle.
Fixed rate tariffs
Fixed rate tariffs have fixed unit rates and standing charges for the duration of the contract. This means they aren’t affected by wholesale market or price cap changes, so you have price certainty during your contract.
Standard variable tariffs
Standard variable tariffs are usually the most expensive tariff type. They’re capped by the price cap, which means when the price cap changes so do your unit rates. All the standard, capped price you pay is subject to change.
Dual fuel tariffs
Dual fuel tariffs allow you to get gas and electricity from the same provider, which can be cheaper than getting them separately. It’s worth comparing dual fuel deals against separate gas and electricity deals to work out your best option.
Renewable/green energy tariffs
Green energy is widely available. Most providers now offer tariffs that feature electricity generated from renewable sources through renewable gas is more difficult to achieve. Use tariff filters to see green deals.
Prepayment tariffs
Prepayment tariffs require energy to be bought in advance and topped up via your meter. This is often more expensive than being on a credit meter. Suppliers usually offer at least one prepayment tariff.
Time-of-use tariffs
Time-of-use tariffs such as Economy 7 offer multiple unit rates for day and night use, with night-time use cheaper than daytime use. They can be good for electric vehicle owners with home chargers.
We compare these energy suppliers
We compare deals from a wide range of energy suppliers, from household names to newer brands.
British Gas
EDF Energy
E.ON Next
Octopus Energy
OVO Energy
ScottishPower
Utilita
Shell Energy
Good Energy
So Energy
Outfox the Market
Utility WarehouseComparing with us is a no-brainer
“It took me a couple of minutes to compare energy prices and switch, with all the faff of switching and payments etc. done for you. I’ve just saved close to £480 per year in gas and electricity by switching. Great comparison and switching app — highly recommended.”
Jennifer, Constantine
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Energy guides
Guide
How to switch energy supplier for a cheaper deal
Looking for a cheaper gas or electricity supplier but not sure where to start? Here’s how it works.
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July 2026 average gas and electricity bills in the UK
Find out what the average UK gas and electricity bill looks like in July 2026 and how yours compares.
Read guideEnergy prices and suppliers FAQs
Why should I switch energy?
Switching is still the simplest way to cut your bills. Standard variable tariffs track the price cap, and fixed deals are often cheaper over a full year while giving you certainty on your rates.
How often do energy prices change?
The price cap is reviewed every three months by Ofgem. Fixed tariffs don’t change during your contract term, which is why many households and businesses prefer them.
How long does it take to switch energy?
Most switches complete within five working days after your 14-day cooling-off period. Your supply is never interrupted.
How can I get a cheap gas and electricity deal?
Run a comparison with an accurate usage figure from a recent bill, compare deals on estimated annual cost rather than headline rates, and check exit fees before you commit.
Is it easy to switch energy supplier?
Yes. You confirm the deal you want and your new supplier handles the transfer, including contacting your old supplier and taking final readings.
What’s the best energy supplier?
There isn’t one best supplier — it depends on price, customer service ratings and the tariff type you need. Our results show cost and service ratings side by side.
What happens when I switch energy?
Your new supplier arranges the transfer, you submit a final meter reading, and your old supplier sends a closing bill. Nothing physical changes at your property.
Can I compare gas and electricity deals individually?
Yes. You can compare gas only, electricity only, or dual fuel, and see which combination works out cheapest for you.
Can I get a green energy deal with Grow Your Business?
Yes — many suppliers offer 100% renewable electricity tariffs, and you can filter results to show green deals only.
Can I change energy provider if I’m in debt?
If you owe less than £500 per fuel you can usually still switch under the Debt Assignment Protocol. Above that, you’ll need to clear the balance first.
I’m moving home. How do I switch gas and electricity?
You’re responsible for the supply from the day you move in. Take a meter reading on day one, contact the existing supplier, then compare and switch.
Can I change energy provider if I rent?
If your name is on the energy bill and you pay the supplier directly, you have the right to switch.
Can I change energy if I have a prepayment meter?
Yes. Prepayment customers can switch supplier, and many can also ask to move to a credit meter.
What support can I get if I’m struggling with my energy bills?
Suppliers must offer payment plans and hardship support. Grants, the Warm Home Discount and Winter Fuel Payments may also be available.
Written by the Grow Your Business editorial team · Updated 25 July 2026