What is the Ofgem energy price cap and what does it mean for your bills?

Energy bills fell by 7% on 1 July when the new Ofgem price cap came into effect. What exactly is the cap?

The Ofgem energy price cap, symbolised by a gas flame
A new Ofgem energy price cap is announced every three months
(Image credit: © Getty Images)

The regulator Ofgem sets the energy price cap every quarter, which dictates how much millions of customers pay for their gas and electricity.

The cap fell by 7% on 1 July, slightly easing the pain for customers on variable tariffs after three consecutive quarters of price hikes in October, January and April.

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July-September price cap

October-December price cap (forecast)

Electricity unit cost

25.73 pence per kWh

26.17 pence per kWh

Electricity standing charge

51.37 pence per day

51 pence per day

Gas unit cost

6.33 pence per kWh

6.02 pence per kWh

Gas standing charge

29.82 pence per day

30 pence per day

Ruth Emery
Contributing editor

Ruth is an award-winning financial journalist with more than 15 years' experience of working on national newspapers, websites and specialist magazines.

She is passionate about helping people feel more confident about their finances. She was previously editor of Times Money Mentor, and prior to that was deputy Money editor at The Sunday Times. 

A multi-award winning journalist, Ruth started her career on a pensions magazine at the FT Group, and has also worked at Money Observer and Money Advice Service. 

Outside of work, she is a mum to two young children, while also serving as a magistrate and an NHS volunteer.

With contributions from