This is only a very small change from the current rate for medium-use homes of around £1,755 a year, or £146 a month. But that's not the whole story – the new rates shift more costs onto electricity charges while decreasing the cost of each unit of gas. Standing charges for both fuels will see a small rise.
The price cap is not an overall cap on total bills, but rather a cap on the amount that suppliers can charge per unit of energy. Households that use more than the average amount of gas and electricity will end up paying more than the estimates, while houses that use less will pay less.
Who does the energy price cap affect?
Changes to the energy price cap will affect the cost of energy for households who are on:
The price cap doesn't apply to you if you've signed up to a fixed energy tariff.
Find out more:What will my energy cost in January 2026?
The new average rates for variable tariffs for those who pay by direct debit will be:
Electricity unit rate: 27.69 26.35Electricity daily standing charge: 53.68Gas unit rate: (currently an average 6.29p).Gas daily standing charge: 35.0934.03If you have a prepayment meter, you pay the same standing charge as direct debit customers but slightly lower rates per kilowatt hour.
£147Ofgem sets the price cap and defines medium energy use per year as 11,500kWh of gas and 2,700kWh of electricity.
You'll pay a different amount if you use more or less than this. Note that because electricity costs have increased while gas has decreased, if you do not have a gas supply then these changes are likely to have a bigger impact on your bill.
Below, we've compared the annual energy costs of example households using low, medium and high amounts of energy, paying current rates and the rates that begin on 1 January 2026.
The actual prices you pay for your energy will vary by region and payment method. Different suppliers may split out their unit rates and standing charges differently.If you're on a variable tariff, your energy supplier should contact you to let you know your new prices before they change.The price cap doesn't apply if you live in Northern Ireland.If you have a prepayment meter, your unit rates will be slightly lower than those who pay by direct debit, though your standing charges will be the same.Should I get a fixed energy deal?. Those with fixed deals won’t be affected by changes to the price cap. Most households have two tariffs, one for electricity and one for gas.When we checked on 31 October 2025, we found around 30 tariffs on the energy market costing less than the price cap that applies from October to December 2025. Annual savings for the cheapest available fixed tariff were for a typical, medium-use household compared with the current price cap.Energy suppliers tend to adjust the fixed tariffs they offer more or less in line with the price cap, so if you're currently on a price-capped variable tariff, it's worth fixing a deal now before prices start to increase.
Find out moreWhat if I can't afford my energy bills?If you're struggling to afford your energy bills, there are several resources available to help you. Reaching out to your supplier is the best way to get help. Under Ofgem rules, suppliers must offer payment plans you can afford, and you can also ask for ‘emergency credit’ if you use a prepay meter and can’t top up. Some of the ways suppliers can help you include giving you more time to pay, offering you a payment break or reduction in your payments, and helping you access hardship funds. In addition to support from suppliers, there are government schemes designed to help those in need.If you're not sure what you might be eligible for, head to our guide to gettingsource https://www.which.co.uk/news/article/the-energy-price-cap-will-increase-by-0.2-from-new-years-day-aR0mt2A0cw2y