What is the energy price cap?
On 27th May 2026 Ofgem announced that energy prices will go up by around £2211 when the new price cap comes into effect on 1st July 2026. This means a typical1 dual fuel household paying by Direct Debit will see their prices go up to around £1,8622 a year.
The energy price cap is set by Ofgem. It limits how much suppliers in Great Britain (including Scotland) can charge for each unit of gas and electricity, plus the daily standing charge. It doesn’t cap your total bill, what you pay still depends on how much energy you use.
Latest energy price cap update (1st July 2026)
What this means:
Your unit prices will go up
- What you pay depends on how much energy you use
Understanding the energy price cap
You’ve probably heard the term energy price cap a lot by now. But one of the biggest misunderstandings is the price cap is not a limit on your total bill.
Instead, it sets a maximum amount suppliers can charge for:
Each unit of gas and electricity (kWh)
- The daily standing charge
Your bill still depends on how much energy you use.
A simple way to think about it
Think of it like charging your electric vehicle (EV) or filling up your car. There’s a price per unit (like the cost per charge or cost per litre). But the more you use, the more you pay. So even with a price cap, your total cost can still go up if you use more energy.
Important to know
The price cap only applies to standard variable tariffs
It does not limit your total bill
What you pay still depends on how much energy you use
The price cap sets the maximum price per unit, not your overall spend.
Unit rate vs standing charge
These are the two main parts of your bill.
Unit rate (what you use)
The price for each unit of energy
- Energy is measured in kilowatt hours (kWh)
The more you use, the more you pay
The price per unit is limited by the price cap
Standing charge (daily cost)
A fixed daily charge, also known as a standing charge
This helps cover the cost of supplying energy to your home, including maintaining pipes, wires and meters
You pay this even if you don’t use any energy
Standard variable price vs fixed price tariffs
How the energy price cap affects what you pay
Understanding your energy tariff can help you stay in control of your costs. Here’s a simple guide to the two most common types – and how the price cap fits in.
What is a standard (variable) tariff?
A standard variable tariff (SVT) is a flexible option with no fixed end date.
Your unit rate (price per kWh) and standing charge can change
Prices go up or down over time
Most customers move onto a standard tariff when:
their fixed deal ends, or
they haven’t chosen a new tariff
What is a fixed price tariff?
A fixed price tariff locks your prices in for a set period, often between one and two years.
Your price per unit and daily standing charge stay the same during the contract
You’re protected if energy prices go up
You may pay an exit fee if you leave early
Which option might suit you?
Choose a standard variable tariff if you want flexibility and no exit fees for leaving your supplier
Choose a fixed price tariff if you want predictable monthly costs
Should you fix your prices?
By choosing a fixed price tariff you can protect yourself against future price cap increases. If you choose a fixed tariff with us at ScottishPower and the price cap is a decrease. You’ll be able to switch tariffs with us without paying exit fees, if a cheaper fixed price tariff becomes available to you.
Why the energy price cap changes
The energy price cap is not fixed. Ofgem reviews it every three months to reflect changes in the energy market.
What Ofgem looks at
When setting the price cap, Ofgem considers:
Wholesale energy costs (the price suppliers pay for gas and electricity)
Network costs (running and maintaining pipes and wires)
Supplier costs (billing, customer service, and operations)
Government and environmental schemes
Why prices can change
The United Kingdom relies heavily on gas. This means global market changes can affect energy prices here.
For example, prices may change due to:
shifts in global supply and demand
weather patterns
international events affecting gas supply
There’s more information about energy prices in our Support Centre.
What does the latest price cap mean for you?
For most customers in Scotland and across Great Britain that are on SVT:
- You could see higher unit rates from July 2026
- Your overall bill depends on your energy use
Summer bills could typically be lower due to you using less heating, than in winter
How to manage your energy costs
The price cap helps limit how much suppliers can charge per unit. But the biggest factor in your bill is how much energy you use.
Start with simple changes:
Turn down your boiler flow temperature
Bleed your radiators so heat spreads evenly
Draught‑proof doors and windows to keep warm air in
Switch to LED bulbs, which use less electricity
These small steps can reduce your energy use without affecting comfort.
Why this makes a difference
These changes help you use less energy while keeping your home comfortable.
Lower energy use means lower costs over time
Even small changes can add up across the year
If you need extra support
If you’re struggling to pay your energy bill, we recommend you contact us as soon as possible. We’ll then do everything in our power to help you manage your energy debt and avoid it building up. There’s more information in our support centre about what support is available.
Other ways we can help
There are also simple steps you can take to stay in control:
- Send regular meter readings to keep your bills accurate
- Track your energy use in your online account using our Energy Insights3 tool
Check if another tariff could suit you better
- Join Power Saver4 and make the most of cheaper electricity5
Frequently asked questions
1
A typical household, paying by Direct Debit, that uses 2,700 units (kWh) of electricity (single rate meter) and 11,500 units (kWh) of gas a year.
2
The £221 yearly increase is based on the difference between Ofgem’s price cap for 1st April 2026 (£1,641) and the new price cap from 1st July 2026 (£1,862). The change to what you pay every month will depend on how much energy you use.
3
Available free of charge to ScottishPower smart meter customers who opt-in to half-hourly data reads. ScottishPower reserves the right to charge for this product in the future. Eligibility criteria apply, excludes customers with a prepayment meter. Find out more here.
4
Electricity used will be charged at your normal unit rate, and you will later have your bill, or meter if you are a Pay As You Go customer, credited for the energy used during your chosen slots. Each day is divided into hourly slots, with a 50% or 20% discount rating applied to selected slots (50% slots available 98 hours per week, 20% slots available 50 hours per week). Credit is calculated depending on the rating of your chosen slots (excluding VAT) and appears as ‘Power Saver Credit’ on your bill or statement. Your daily standing charge will be charged at your normal rate. Eligibility criteria, exclusions, and T&Cs apply.
5
Our Power Saver Offer events are part of our Power Saver service. You must be a ScottishPower electricity customer with an online account, a communicating smart meter and consent to sharing half-hourly readings with us to participate in the Power Saver Offer. Exclusions apply. See Power Saver Offer Terms and Conditions.
Last updated: 27 May 2026