Energy price cap predictions
Take the mystery out of energy prices!
Our price cap forecast is designed to help you understand if your home's energy should be on a variable tariff that follows Ofgem's cap price, a fixed rate tariff for price certainty, or a tracker tariff with discounted standing charges and cap rates.
Take control of your energy
As Britain’s biggest generator of zero carbon energy(1), we've a deep understanding of the energy market. This allows us to predict future changes to the Ofgem energy price cap, or the Default Tariff Cap, as it’s also known.
Each week we update this page with new information about changes to the cap's energy prices, and how it affects your energy tariff choices should you want to switch supplier or tariff.
Are energy prices going up or down?
Our forecasts for cap periods from July 2026 onwards have risen since last week, driven by increases in wholesale prices.
How are energy prices predicted to change in 2026?
The current price cap is £1,641. Future cap periods beyond Q2 2026 have low certainty, as costs are not confirmed this far in advance.
See if you can save: compare our tariffs against Ofgem's price cap
Switch in four simple steps!
Step 1
Get a quick energy quote, choose your tariff and buy online
Step 2
We'll sort a switch date with your current energy supplier, so you don't need to worry
Step 3
We'll get in touch for your electricity and gas meter reading(s)
Step 4
We'll let you know when you've successfully switched
Our tariffs
We offer two classic types of gas and electricity energy tariffs: fixed or our tracker tariff which follows Ofgem's price cap, but is always priced lower than the cap.
If you're on a fixed energy tariff, the changes to the price cap won't affect your energy prices. If you're a variable energy tariff then the price cap prices will affect how much you pay for your energy.
We also offer tariffs for solar panels, air source heat pumps and electric vehicles.
Simply Tracker Extra Jun27
- Save up to £100 a year when you choose both fuels, or £50 with one(4)
- Guaranteed discounted standing charge for the time of your tariff(5)
- Your prices may rise and fall every three months in line with Ofgem's price cap(6)
- Fixed tariff end date
- Exit fees apply
- Earn free electricity with our Sunday Saver challenges!(7)
Get a smart meter installed at no extra cost!
- Locking in your prices means no nasty surprises
- Fix your rates and standing charges
- Exit fees apply
- Fixed tariff end date
- Earn free electricity with our Sunday Saver challenges!(7)
Get a smart meter installed at no extra cost!
Ofgem’s current price cap
The current price cap runs from 1 April to 30 June 2026 and is set at £1,641 on an annual basis. This is the national average price paid by a typical domestic customer paying by Direct Debit(3).
Don’t forget, it’s the standing charge and cost per unit of energy that Ofgem sets, not your bill. Your energy bill will vary depending on how much energy you use.
What is the energy price cap and how does it work?
The energy price cap broken down:
- It controls the cost that providers can charge customers for their energy
- Ofgem, the government’s regulator, change the price cap every three months to reflect global changes in the wholesale costs of energy, and other factors
- As energy providers have already paid for the energy they sell, the price cap actually reflects the costs from three months ago, rather than wholesale costs now
So, to keep on top of your energy bills, it’s important to think about the future costs of energy.
Why do energy prices go up and down?
As a country, we don't make all the energy we actually need.
This means we have to buy energy from global wholesale markets, where all countries compete to buy energy. When it comes to buying energy, there are many factors that affect the wholesale prices, for example:
- Geopolitical instability - this is one of the key reasons for energy prices rising - we saw this when Russia first invaded the Ukraine, and conflicts elsewhere in the world, also affect energy prices
- Power plant outages - rising temperature has been blamed for certain power plants choosing to reduce production due to safety concerns, and also planned power outages can affect energy prices
- Reduced renewables production - similarly, low winds and power outages have increased the cost of gas production - with renewable energy linked to gas prices, this has increased the cost of renewable energy prices
- Colder weather - every year, when the weather gets cold and we have longer, darker evenings, we use more energy - this demand for supply pushes wholesale prices up
These are just a few of the reasons why energy prices fluctuate, and one of the main reasons we're proud to be Britain's biggest generator of zero carbon electricity(9) and doing everything we can to help build Britain's energy infrastructure.
What we’re doing to help bring down energy prices
- We’re investing all our profits into building more renewable and nuclear power to help reduce Britain’s reliance on buying gas and electricity in from around the globe
We’re continuing to call for government to introduce a social tariff for those on low incomes
Helping our customers earn free electricity on Sundays by shifting their usage away from peak times
Offering tariffs priced below the price cap: beat the cap by £100 a year with our tracker tariff!(10)
How else to cut energy costs
We're all looking for ways to save energy and money in our homes! Here're some simple, but effective ways you can easily make a difference to your monthly bill:
- Switch off at the wall! The Energy Saving Trust estimates switching devices off standby could save you £45 in GB and £55 in NI a year!
- Switch lights off when you leave a room! Did you know, the typical household could save almost £7 a year in GB and £9 in NI, just by switching the lights off?
- Only boil what you need! If you're making a cup of tea, only boil the amount of water you're going to drink to save energy and money. You can save around £10 a year in GB and £12 in NI.
- Are you on the right tariff? It's worth check you're on a tariff that matches your household's energy needs, if you need a little more advice, try reading our blog How to choose the best energy tariffs.
For more tips and tricks read our blog Ways to save energy at home: the facts and the fiction.
