Understanding Home Energy Prices: A Guide to Tariffs, Quotes and the Price Cap

Understanding how your home energy bill is calculated is the first step towards managing your household costs. The price you pay for gas and electricity can seem complex, but it’s determined by a few key factors that are useful to know. Whether you’re looking to switch supplier, your fixed deal is coming to an end, or you simply want to get to grips with your spending, this guide explains the essentials of domestic energy pricing.

We’ll break down the components of your bill, explain the role of the regulator’s price cap, and explore the different types of tariffs available. With this knowledge, you’ll be better equipped to compare quotes and make sure you’re not paying more than you need to.

The Cheapest Home Energy Deals Right Now

Before getting into how prices are built up, here is where the market stands today. The explorer below ranks the ten cheapest deals open to new customers across the whole market, shown as the estimated annual bill for a typical household paying by Direct Debit. Use the tabs to switch between dual fuel, electricity only and gas only, and to narrow the list to fixed deals or price cap trackers. Each table ends with a typical standard variable tariff, so you can see at a glance how much a switch might save.

Dual fuelGas + electricityElectricityElectricity onlyGasGas only

All dealsFixedTrackers

Tariff		Annual bill
	So Energy So Green Tracker 24m Tracker · 24 months · £190 exit fee · green	£1,662 £1,609 - £1,747 by region
	Outfox Energy Outfox the Price Cap Tracker 12M Dual - V3.101 Tracker · 12 months · £150 exit fee	£1,694 £1,643 - £1,777 by region
	So Energy So Green Tracker 12m Tracker · 12 months · £100 exit fee · green	£1,713 £1,659 - £1,798 by region
	E.ON Next Next Pledge Tracker 12m V12 Tracker · 12 months · £50 exit fee	£1,715 £1,662 - £1,800 by region
	EDF Energy Simply Tracker Jan28 Tracker · 15 months · £100 exit fee	£1,715 £1,662 - £1,800 by region
	British Gas Cap Tracker Mar28 v2 Tracker · 17 months · £50 exit fee	£1,715 £1,662 - £1,800 by region
	Fuse Energy October 2026 Fixed (24m) V4 Fixed · 24 months · £100 exit fee	£1,745 £1,696 - £1,825 by region
	ScottishPower Cap Tracker Dec 2027 v1 Tracker · 14 months · £100 exit fee	£1,751 £1,698 - £1,836 by region
	Sainsbury's Energy Sainsburys Track and Reward 12m v1 Tracker · 12 months	£1,766 £1,713 - £1,851 by region
	Sainsbury's Energy Sainsburys Energy Fix and Save 24m v11 Fixed · 24 months · £200 exit fee	£1,800 £1,750 - £1,861 by region
	Typical standard variable tariff Variable · no fixed term · no exit fee	£1,723 if you don't switch

▸Prices are correct as of 17th October 2026. Source: SwitchPal analysis of whole-of-market domestic tariff data.

Estimated annual bill for a typical household (Ofgem typical consumption: 2,500 kWh of electricity and 9,500 kWh of gas a year), paying by monthly direct debit, before discounts, correct as of 17th October 2026. National figures are averaged across Great Britain's 14 electricity regions - the exact price and tariff availability depend on where you live. Only tariffs available through energy comparison are shown; some suppliers also sell exclusive or existing-customer-only tariffs directly, which are not included. Dual fuel bills combine both fuels on one tariff; many suppliers only offer gas as part of a dual fuel deal, so the dual market is larger than the gas-only market. Dual exit fees are the sum of both fuels'. The standard variable benchmark is the Ofgem price cap for the current period (GB average) at the same typical consumption.

The figures are national averages and refresh daily, so what you see is current rather than a snapshot from when this guide was written. Your own quote will differ with your region and your usage, which is exactly what the rest of this guide explains. When you are ready to see real prices for your home, get a personalised home energy quote in a couple of minutes.

What Makes Up Your Energy Bill?

Every gas and electricity bill is made up of two main charges set by your supplier: a unit rate and a standing charge. Understanding the difference between them is key to figuring out your total costs. If you need help finding this information on your statement, our guide on ‘How to Read Your Domestic Energy Bill’ can help.

Unit Rate

The unit rate is the price you pay for each unit of energy you use. This is measured in kilowatt-hours (kWh). A kilowatt-hour is a standard unit of energy - for example, running a 100-watt lightbulb for 10 hours would use 1 kWh. The more energy you consume, the more you’ll pay, so your usage has a direct impact on the size of your bill. This rate will vary between suppliers and tariffs.

Standing Charge

The standing charge is a fixed daily fee that you pay regardless of how much energy you use. Even if you’re away on holiday and use no gas or electricity, you will still incur this charge. It covers the cost of keeping your home connected to the energy networks, including maintaining the pipes and wires that deliver energy to your property. It also contributes towards the costs of meter readings and government social and environmental programmes, such as the Warm Home Discount.

Types of Home Energy Tariffs

When you sign up with an energy supplier, you will be placed on a specific tariff. There are four main types for domestic customers in the UK.

• Fixed-Rate Tariffs: These tariffs lock in your unit rates and standing charges for a set period, usually 12 or 24 months. This means your prices won’t change, giving you certainty and protecting you from any market price rises during your contract. However, you won’t benefit if energy prices fall. Most fixed tariffs also charge an exit fee if you decide to leave before the contract ends.

• Standard Variable Tariffs (SVTs): Also known as default tariffs, SVTs have prices that can go up or down depending on wholesale energy market conditions. If you are on an SVT, your rates are protected by the Ofgem energy price cap. You are free to leave an SVT at any time without paying an exit fee.

• Tracker Tariffs: These follow the wholesale price of energy, with unit rates that move daily or monthly according to a published formula rather than being fixed or set by the supplier. When wholesale prices fall you see the saving almost straight away, but when they rise your rates rise with them, and because a tracker is not a default tariff it is not protected by the price cap. There are often no exit fees, so you can leave if it stops working for you. Best suited to households that watch the market and can absorb a few expensive months.

• Green Tariffs: These tariffs are designed for customers who want to reduce their environmental impact. Suppliers offering green tariffs promise that some or all of the electricity you use is matched with electricity generated from renewable sources like wind, solar, or hydro. This is often achieved by purchasing Renewable Energy Guarantees of Origin (REGOs) certificates. The environmental credentials of these tariffs can vary, which you can learn more about in our ‘A Guide to Green Energy Tariffs’.

The Ofgem Energy Price Cap Explained

The energy price cap is a measure put in place by the UK’s energy regulator, Ofgem, to protect households on default energy tariffs. Introduced in 2019, it limits the maximum amount suppliers can charge for the unit rate and standing charge. It is crucial to remember that the price cap is not a cap on your total bill. Your final bill will always be determined by how much energy you use.

Ofgem reviews and updates the price cap every three months to reflect changes in wholesale energy costs and other factors. For the period from 1 October 2026 to 31 December 2026, the price cap is set at a level equivalent to £1,723 per year for a typical household paying by Direct Debit. This figure represents a 4% increase from the previous quarter, driven mainly by a rise in wholesale gas prices.

The table below shows the national average unit rates and standing charges under the cap for a customer paying by Direct Debit, for the current period and, once Ofgem has published it, the next one:

Current Price Cap Rates

These are national averages, and the exact rates vary by region because the cost of running the local networks differs. Additionally, a temporary government measure has removed the 5% VAT on electricity from 1 October 2026 to 31 March 2027. VAT on gas remains at the standard 5% rate. The price cap applies to you if you are on a supplier’s standard variable tariff (SVT). This is usually the case if your fixed-term deal has ended and you haven’t switched, you’ve never switched supplier, or your previous supplier went out of business.

How the Price Cap Has Changed

The cap has been anything but stable. The charts below show how it has moved for each cap period since 2019: first what a typical household has paid over a year, then the unit rate and standing charge for electricity and for gas. The months marked on each chart are the Energy Price Guarantee, the government scheme that limited what households actually paid between October 2022 and June 2023 while the cap itself sat higher.

Typical Annual Bill Since 2019

This is the figure most people mean when they talk about the cap: the yearly bill for a typical dual fuel household on Direct Debit, with the electricity and gas shares shown separately. Every period is worked out on today's typical usage, so the lines are comparable across the years rather than distorted by changes in how much energy homes used. The jump through 2022 and the fall since are plain to see, as is the gap between the cap and what was really paid during the Energy Price Guarantee.

Electricity Price Cap Since 2019

Rates roughly doubled between the start of 2021 and 2023 as wholesale prices surged, and although they have fallen back since, they remain well above where they were before the energy crisis. The standing charge has also crept up, which is why some households have seen bills rise even when their usage has not.

Gas Price Cap Since 2019

Gas follows the same shape, with a sharper peak. The gas unit rate is a fraction of the electricity rate per kWh, but most homes use far more gas than electricity, so a change in the gas cap tends to move the typical bill more.

The lesson from these charts is that the cap follows the wholesale market with a lag of a few months. When wholesale prices are falling, a fixed deal signed today can leave you paying more than the cap later; when they are rising, fixing can protect you. Checking the direction of travel before you commit is worth a few minutes.

Price Cap Rates by Region

The national average hides real differences between regions. Ofgem sets the cap separately for each of the fourteen electricity and gas network areas, because the cost of running the local wires and pipes varies, and the standing charge in particular can differ by a noticeable amount from one region to the next. The tables below show the current cap, and the next one once published, for every region.

Electricity Price Cap Rates by Region

Gas Price Cap Rates by Region

How to Compare Energy Quotes

Regularly comparing energy deals is the most effective way to ensure you’re on a competitive tariff. To get started, you’ll need a few details from a recent energy bill:

• Your current supplier’s name and the name of your tariff.

• Your energy consumption over the last year, in kWh. This provides the most accurate basis for comparison.

When you our comparison service, it will show you a list of available tariffs. It’s tempting to focus on the estimated annual cost, but it’s wise to also look closely at the unit rates and standing charges for each deal. A tariff with a very low unit rate might have a high standing charge, making it more expensive if you have low energy usage, and vice versa.

Once you find a tariff that suits your needs and offers better value, the switching process is straightforward. Your new supplier will handle all the arrangements, including contacting your old supplier to begin the switch. The entire process is usually completed within a few weeks.

Frequently Asked Questions

Is the Price Cap the Maximum My Bill Can Be?

No, this is a common misunderstanding. The price cap limits the rates a supplier can charge per unit of energy and the daily standing charge. It does not limit the total amount of your bill. The more energy you use, the higher your bill will be, regardless of the cap.

What Happens When My Fixed-Rate Tariff Ends?

If you don’t switch to a new deal when your fixed-rate tariff ends, your supplier will automatically move you onto their standard variable tariff (SVT). This tariff is subject to the Ofgem price cap, but it is often more expensive than the fixed deals available on the market. Your supplier must notify you before your fixed term is about to expire.

Is It Worth Fixing My Energy Tariff Right Now?

Deciding whether to fix your tariff depends on your attitude to risk. A fixed tariff gives you certainty over your energy costs for the duration of the deal, protecting you from price rises. However, if wholesale prices fall, you won’t benefit from cheaper rates. Staying on a variable tariff means your prices could fall, but they could also rise. With the price cap increasing by 4% in October 2026, fixing could provide welcome stability, but it’s always best to compare the latest deals.

Take Control of Your Energy Costs

Getting to grips with unit rates, standing charges, and the different tariffs on offer is the best way to take control of your household energy spending. Whilst the Ofgem price cap offers important protection for millions, it isn’t a substitute for an actively chosen, competitive deal. By regularly comparing the market and understanding your own usage, you can make an informed choice that saves you money and gives you peace of mind.