From 1 April to 30 June 2026, the energy price cap falls across all payment methods. This update reflects formula-driven adjustments rather than new policy decisions.
Headline Movements (Typical Medium Consumption)
Price Cap Levels
| Payment Method | Jan–Mar 2026 | Apr–Jun 2026 | Change | % Change |
|---|---|---|---|---|
| Direct Debit | £1,758 | £1,641 | -£117 | -7% |
| Standard Credit | £1,894 | £1,772 | -£122 | -6% |
| Prepayment (PPM) | £1,711 | £1,597 | -£114 | -7% |
| Economy 7 (DD) | £1,229 | £1,108 | -£121 | -10% |
Standard Credit remains the most expensive payment method, costing £131 more than Direct Debit.
Key Drivers of the Change
1. Policy Costs – Major Decrease
Policy cost allowance drops £130 (55%), from £236 → £106.
- Driven mainly by UK Budget 2025 measures removing or reducing several obligations from consumer bills:
- ECO & GBIS no longer funded via bills.
- Renewables Obligation (RO) allowance cut by 75% from April 2026.
- Warm Home Discount (WHD) costs move from standing charge → unit rates.
- Indexation for RO and FiT schemes changes from RPI → CPI.
2. Wholesale Costs – Modest Decrease
Wholesale cost allowance falls £38 (6%), from £690 → £652.
- Gas prices lower due to strong LNG supply, higher global production, and reduced Asian demand.
- Some offset from a short cold period in Jan 2026, causing price spikes.
3. Network Costs – Significant Increase
Network costs rise £66 (17%), from £397 → £463.
- Mainly due to RIIO‑3 price control decisions affecting:
- Electricity Transmission
- Gas Transmission
- Gas Distribution
- Also impacted by new depreciation rules and updated WACC methodology.
4. Other Adjustments
- Operating, debt & industry costs: small decreases.
- VAT, headroom, EBIT allowance: small decreases.
- Appendices show detailed cost breakdowns for each payment type.
Ofgem emphasises:
- Suppliers must ensure full compliance with licence obligations.
- Data to Ofgem must be accurate and timely.
- Ofgem will monitor service quality and take enforcement action where needed.