Ofgem's energy price cap is falling.
The latest on Ofgem's energy price cap.
On 25 February 2026, Ofgem announced that the latest energy price cap, for a typical household who use electricity and gas and pay by Direct Debit, would be £1,641 from 1 April 2026 to 30 June 2026. This figure uses Ofgem's definition of 'average energy use' known as the Typical Domestic Consumption Values (TDCV). Ofgem sets the maximum amount that suppliers can charge for each unit of electricity and gas but not the total bill, so if you use more energy, you will pay more.
Customers on our standard variable tariff, Next Flex, will be sent a letter or email detailing the changes to their unit prices and standing charges for the period of 1 April 2026 to 30 June 2026.
Ofgem's energy price cap sets a maximum unit price for each kilowatt hour of energy used by customers on a standard variable tariff (SVT). The specific unit rates each customer sees will vary by region and payment type.
Suppliers may offer a lower standing charge for their default tariffs under the price cap but to raise the unit rate above that assumed in Ofgem's price cap, they need to demonstrate that the overall amount charged to consumers is at or below the total price cap.
Suppliers are free to offer fixed tariffs with a different balance of standing charges and unit rates and many do so.
Standing charges vary by supplier, where you live, how you pay and what meter you have. Standing charges by region.
The energy price cap applies to customers on a SVT. If you're on a fixed tariff, the price cap won't affect you. You can sign in to your account and see which tariff you're on. Did you know that we have a tariff with prices that stay below the energy price cap? Our Next Pledge tariff costs less per unit than the price cap unit rate, whether it goes up or down. With our Next Pledge tariff, you'll get energy prices guaranteed to stay below the Ofgem price cap - saving you £100 based on average annual consumption. T&Cs apply. Get a quote today.
The April 2026 government energy cuts and what you could save.
From April 2026, the government is cutting the extra costs normally added to your energy bills. They're scrapping the Energy Company Obligation (ECO) levy and moving 'green levies' to general taxation.
As a result, they're predicting the average household could save as much as £150 a year. However, the exact amount will depend on your energy use habits and household.
We're working closely with the government and regulators to ensure it's done automatically in the fairest way possible. We aim to reflect these savings in your unit rates, so your bills will be lower in line with your energy use.
The important part? You'll receive these savings, no matter the tariff you're on. Changes should take effect automatically from April 2026, but we'll keep you updated.
Learn more about the April 2026 government energy cuts.
Our latest energy price cap predictions.
Energy price cap predictions are constantly in flux and keeping on track can be tricky. We want to help you get a better understanding of how energy prices are predicted, which is why we have a whole page dedicated to keeping you in the know.
Get key information about the latest UK energy price cap predictions, including our handy prediction table, which we update weekly. We also deep dive into global influences and explore just how the experts make their predictions.
Switch and save even more!
Ofgem has just announced their new price cap of £1,641 from 1 April 2026.
You could save even more money with our new time of use tariff, Next Smart Saver. Featuring two cheaper off-peak periods of electricity a day, plus a super off-peak, and a peak period, you could get better bill control depending on when you use your electricity. T&Cs apply.
The next energy price cap review is in May and will be effective from 1 July 2026.
Ofgem has changed their definition of 'average energy use'. Ofgem's old definition of average energy use, known as the Typical Domestic Consumption Values (TDCV) has changed to more closely reflect the current average energy use. Typical annual household consumption is now estimated to be 2,700 kWh a year for electricity, and 11,500 kWh a year for gas. Learn more about Ofgem's average electricity and gas usage.
What the energy price cap means for customers.
Standard variable tariff (SVT) customers.
The majority of customers on a standard variable tariff (SVT) will see their unit prices decrease and electricity standing charges increase to be in line with those set by Ofgem from 1 April 2026.
The specific unit rates each customer sees will vary by region and payment type. This is to reflect the different costs to suppliers of providing energy to homes and servicing the different payment methods. The regional variations for electricity, and payment type variations, have been adjusted by Ofgem in the most recent price cap calculations (24 February 2026). We will adjust standard variable tariffs automatically. Customers on standard variable tariffs do not need to take any action.
Fixed tariff customers.
Fixed tariff customers will remain at the prices they agreed when they took their contract out.
Prepayment meter customers.
For prepayment meter customers, Ofgem's energy price cap will be applied to the price you pay for each unit of energy. The unit price varies regionally, by payment method and depends on the time of day that the energy is used but the majority of prepayment meter customers will see their unit prices decrease and electricity standing charges increase to be in line with those set by Ofgem from 1 April 2026.
From 1 April 2024 prepayment customers and Direct Debit customers covered by the price cap will pay the same standing charge, known as 'levelisation'. This policy replaces the support through the Energy Price Guarantee which expired at the end of March 2024. The introduction of a levelisation allowance within the price cap will mean that Direct Debit (DD) customers will pay more per year. However, prepayment customers will pay less per year than those on DD.
The specific prepayment standing charges each customer sees will vary by region. The discount will be applied automatically to the price that is set on the meter. You do not need to contact your supplier to apply or use vouchers.
What is the energy price cap?
The energy price cap was introduced by the government in 2019 as backstop protection for customers who are on an energy tariff with standard variable rates. Electricity and gas prices are reviewed and updated by the energy regulator Ofgem. The price cap is not an actual 'cap' on your total bill, the more energy you use the more you will pay.
The energy price cap is calculated and set by Ofgem to reflect changes in industry costs and the graph below shows how these have changed since the last review. The price cap level is set for customers in England, Wales and Scotland. Retail energy prices in Northern Ireland are not subject to a cap. Ofgem review the price cap every three months.
Price cap explained.
Understanding your energy prices can feel confusing. That's why we've broken down the energy price cap for you in this video. Plain and simple.
How will the price cap affect me?
The energy price cap applies to you if you're on one of our standard variable tariffs. Between October 2022 and June 2023 residential customers were protected from the price cap rises by the government's Energy Price Guarantee (EPG). The government's EPG ended on 31 March 2024, so from 1 April 2024 prices are determined by Ofgem's price cap.
What support is available for E.ON Next customers?
This is a worrying time for everyone as the cost of living remains high. We understand that you may be struggling to pay and have a number of resources to help.
E.ON Next Energy Fund.
The E.ON Next Energy Fund has been created to help our customers who are experiencing financial hardship.
There are two ways this fund can help and support you:
To help with paying your energy bill arrears through grants.
To replace appliances such as a cooker, fridge, fridge-freezer or washing machine if yours is broken or in poor condition.
The Priority Services Register (PSR)
The Priority Services Register can offer something extra making sure additional help is in place for customers who need it most, and when difficult situations arise.
We offer a range of special services for people who are of a pensionable age, have a disability or are chronically sick, blind or deaf.
Government support schemes.
You can find more information on these on our payment support page.
Homes for Living.
External debt-advice resources.
Citizens Advice and StepChange also offer support with energy debt.
Help paying your bills with Paylink.
We've partnered with Paylink, a company who specialise in helping customers to understand and take control of their finances. Follow the link to set up an account and then follow the step-by-step process to create your personal budget. Paylink will let us know when you've created your budget and we'll use this information to help and support you with an affordable payment plan tailored to your needs. We'll also be able to let you know if you're eligible for other financial support.
Please use this link to set up an online account and complete your budget form today - the sooner you can provide us with this information, the sooner we can help.
Health and wellbeing resources.
If you are also worried about your mental health, we advise you to talk to our charity partner Mind.
How can I get help from E.ON Next with making this decision?
We recommend checking your tariff online at the end of the month once any new prices have been set and waiting to contact us until then.
You can get advice from our Energy Specialists on WhatsApp. Our E.ON Next Community is also a great place to find support from other E.ON Next customers.
Energy Price Guarantee.
The government's Energy Price Guarantee ended on 31 March 2024. The price cap determines how much energy companies can charge and not the government's Energy Price Guarantee (EPG). From 1 April 2024 prices will be solely determined by Ofgem's price cap as the government's EPG is no longer available.
From 1 October 2022 until 30 June 2023 the government supplemented what customers paid for energy which meant that a typical household saw an annual bill of £2,500.
Customers still paid for the electricity and gas they used. But the government's Energy Price Guarantee limited the price that we could charge for each unit of energy. The scheme didn't cap your bill at £2,500, your bill amount was still based on how much energy you used.
How the Energy Bills Support Scheme worked.
This government scheme has ended. In May 2022 the government announced several support measures to help households with rising energy bills. The main measure was £400 off electricity bills for domestic customers across England, Wales and Scotland. Known as the Energy Bills Support Scheme (EBSS) this money was credited to customers accounts from 1 October 2022. This money does not need to be paid back. There's more information on our dedicated Energy Bills Support Scheme webpage.
Customers saw a discount of £66 applied to their energy bills in October and November, and £67 a month from December to March 2023. The scheme ended on 31 March 2023.
More of your price cap FAQ.
You'll find more answers in our FAQ below which our Energy Specialists regularly update to help support our customers. You can also stay up to date by following us on WhatsApp.
When is the next price cap change?
The price cap changes on 1 January, April, July, and October each year. Ofgem reviews the energy price cap every three months (previously every six months). The level the cap is set at is based on the costs of energy in the market and so this could go up or down.
Where can I find my current energy prices?
You can see your current energy prices through your online account or via the E.ON Next app. If you pay monthly by Direct Debit or on receipt of a bill, you can also see your current prices on that bill. It also shows you our cheapest tariff available at the time. Please note that tariffs may be withdrawn at any time.
I am paying by Direct Debit. Will it change?
We review your Direct Debit regularly to make sure you're paying the right amount for the energy you use. If you're paying too much or too little then we'll take that and the price change into account when setting your Direct Debit.
How will my prices change depending on how I pay?
If you currently top up using a key/card your prices will be updated the first time you top up after the price cap comes into effect (1 January, April, July, and October). If you're not using an E.ON Next key/card your meter may not register these prices, which means you may end up owing us money. To get a new E.ON Next key/card please email hi@eonnext.com and one of our Energy Specialists can get one posted out to you.
If you currently have a Pay As You Go meter your new prices will be picked up automatically when the next price cap comes into effect.
If you pay by Direct Debit or on receipt of a monthly bill, the new prices will apply on your next billing date that follows 1 January, April, July, and October.
Do I need to send a meter reading?
If you're on a variable tariff (such as Next Flex) and don't have a smart meter, then we encourage you to send regular meter readings. The quickest and easiest way to give us a meter reading is through your online account.
You can send us a meter reading from 5 days before the price cap changes to 5 days after – it doesn't have to be on the day.
You don't need to send us a meter reading if:
You're on a fixed tariff as your rates won't change in line with the price cap.
You have a smart meter that is sending us readings, as we'll get one automatically.
How can I make sure I am only paying for the energy I use?
Your energy costs are split into two parts, one is price per unit of energy (per kWh) and the other is your standing charge which we use to maintain the electricity and gas supply to your property. Your meter tracks how much energy you are using. By submitting meter readings regularly you will only be charged for the energy you are using. If you have a smart meter, you can also track your energy use using your in-home display.
If you have a smart meter and we can get a reading from it, we'll use this to work out your usage before and after the price increase date. If not, we'll estimate your usage up to 1 January at the old prices, and from then onwards at the new prices, to calculate your bill.
If you currently top up using a key/card or a Pay As You Go meter, you're able to top up as and when you need.
How will the April 2026 government cost reduction work?
We're working closely with the government and regulators to ensure any savings are decided in the fairest way possible, whether you're a fixed, variable, or prepayment customer. Our aim is to reflect these savings in standing charges and unit rates, so bills are lower in line with energy use.
Does the April 2026 government cost reduction also apply to Sainsbury's Energy customers?
Yes, it does. Sainsbury's Energy customers will also see every penny of the government's April cost reduction.