You may have heard of the energy price cap, but what does it actually mean for your energy bills?

The price cap sets a limit on the rates your energy supplier can charge you if you’re on a standard variable or default tariff. But there are some common misunderstandings about how it works.

Here are four things you might think about the price cap and what the reality is.

 Myth 1: The Price Cap Limits Your Total Energy Bill

The price cap limits the amount your supplier can charge for each unit of energy you use, as well as setting a maximum level for the standing charge on a standard variable or default tariff.

It does not put a limit on your total bill. The more energy you use, the more you will pay.

For example, from 1 October to 31 December 2026, the price cap is £1,723 a year for a typical dual-fuel household paying by Direct Debit. This is based on typical energy use; your actual bill could be higher or lower depending on how much energy you use, where you live and your payment method.

Myth 2: The Price Cap Means My Energy Prices Won’t Change

Ofgem reviews the price cap every three months. This means the maximum unit rates and standing charges for default tariffs can change four times a year.

For example, the cap increased by 4% from 1 October 2026. However, a change in the cap does not necessarily mean your bill will change by the same percentage, because your actual costs depend on how much energy you use.

If you’re struggling to understand a change to your bill, speak to your energy supplier and ask them to explain it.

Myth 3: If I’m on the Price Cap, I Can’t Switch to a Cheaper Tariff

Being protected by the price cap doesn’t mean you have to stay on your current tariff.

The cap applies to default tariffs, including standard variable tariffs. You may be able to find a cheaper deal by comparing tariffs, including fixed-rate options.

Before switching, check the terms of the tariff carefully, including how long it lasts and whether there are any exit fees. Read more on our blog.

Myth 4: If I don’t Use Any Energy, I Won’t Have to Pay Anything

Most energy tariffs include a standing charge; a fixed daily amount that you pay towards the costs of supplying energy to your home, regardless of how much energy you use that day.

Standing charges are included within the price cap, alongside unit rates.

This means you can still receive an energy bill even if you have used very little gas or electricity.

If You’re Struggling With your Energy Bills

If you’re struggling to pay your energy bills, help is available. Contact your energy supplier as soon as possible – they have an obligation to support customers who are finding it difficult to pay.

You may also be missing out on support available to you; check our benefits calculator and grants search.