Calculate your gas and electricity costs using the latest Ofgem price cap unit rates. Enter your kWh usage to get an accurate annual, monthly, and weekly estimate.
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Mustafa BilgicUpdated 20 February 2026 • Q1 2026 Ofgem rates
24.50p
Electricity unit rate (Q1 2026)
6.24p
Gas unit rate (Q1 2026)
£1,738
Average annual UK household bill
Energy Bills Calculator
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Q1 2026 Ofgem Price Cap Rates
The Ofgem energy price cap is reviewed every quarter (January, April, July, October). Below are the rates effective from 1 January 2026 to 31 March 2026.
Fuel
Unit Rate
Standing Charge
Typical Annual Usage
Electricity
24.50p/kWh
61p/day (£222/year)
2,900 kWh/year
Gas
6.24p/kWh
31p/day (£113/year)
11,500 kWh/year
The price cap is NOT a cap on your total bill. It is a cap on the unit rate and standing charge that suppliers can charge. If you use more than the typical amount, your bill will be higher than the headline figure. A typical household bill under the Q1 2026 cap is approximately £1,738/year.
Prepayment meter customers
Customers using prepayment meters pay the same unit rates as direct debit customers from July 2023 onwards. Previously, prepayment customers paid a premium. Standing charges may differ slightly by region.
Regional variation
Standing charges and, to a small extent, unit rates can vary by region due to different distribution network costs. For example, customers in the South West and North of England typically pay higher standing charges than those in the Midlands. Check your supplier's tariff details for your exact regional rate.
Typical UK Household Energy Usage
Ofgem defines typical domestic consumption values (TDCVs) for benchmarking. Your actual usage will vary based on home size, insulation, number of occupants, and appliances.
Household size
Electricity (kWh/yr)
Gas (kWh/yr)
Estimated annual bill (Q1 2026)
1-bed flat / 1 person
1,200
5,000
~£820
2-bed / 2 people (medium)
2,900
11,500
~£1,738
3-bed / 3–4 people
4,200
17,000
~£2,520
4-bed / 4–5 people (large)
6,000
23,000
~£3,500
All-electric homes (no gas)
Homes with all-electric heating (heat pumps, storage heaters) use significantly more electricity but have no gas standing charge. Heat pumps typically use 3,000–6,000 kWh of electricity per year for heating, depending on the efficiency of the pump and insulation of the home.
Economy 7 Tariffs
Economy 7 is a two-rate electricity tariff designed for homes with off-peak storage or immersion heaters. It charges cheaper electricity during seven off-peak hours (typically midnight to 7am) and higher rates during the day.
Rate type
Typical unit rate (approximate)
When applied
Economy 7 off-peak
~9–12p/kWh
Usually midnight–7am
Economy 7 day rate
~26–32p/kWh
All other hours
Standard single rate
~24.50p/kWh
All hours
Economy 7 tip: Economy 7 saves money only if you can shift at least 40% of your electricity usage to the off-peak period. It is ideal for homes with electric storage heaters, hot water tanks with immersion heaters, or overnight EV charging. For standard usage patterns, a single-rate tariff is usually cheaper.
Government Energy Support Schemes
Warm Home Discount (£150)
An annual £150 discount applied automatically to your electricity bill. You qualify if you receive:
The Guarantee Credit element of Pension Credit (Core Group 1 — automatic)
Certain means-tested benefits AND have high energy costs (Core Group 2 — assessed automatically)
Applied between October and March each year. Not all suppliers participate — check with yours.
Winter Fuel Payment (£200–£300)
A one-off annual payment to help older people cover winter heating costs. From winter 2024/25, entitlement is means-tested — you must receive Pension Credit or certain other means-tested benefits to qualify. Previously paid to all those born before a certain date regardless of income.
Cold Weather Payment (£25 per qualifying week)
Paid automatically when the average temperature in your area is 0°C or below for 7 consecutive days. You must receive a qualifying benefit such as Pension Credit, Income Support, income-related ESA, income-based JSA, or Universal Credit with certain conditions. Payments are made from November to March.
ECO4 Scheme (free insulation and heating upgrades)
The Energy Company Obligation (ECO4) scheme funds free or subsidised insulation, boiler replacements, and other energy efficiency measures for low-income households and those on qualifying benefits. Contact your energy supplier or the government's Simple Energy Advice service to check eligibility.
How to Reduce Your Energy Bills
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Turn down the thermostat by 1°C: Reduces heating costs by approximately 10%. Aim for 18–20°C in living areas, 16°C in bedrooms. Each degree saved is worth roughly £70–£100/year for a typical home.
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Shower instead of bathing: A 5-minute shower uses approximately 40 litres vs a bath's 80 litres of hot water. Switching from daily baths to showers can save £50–£100/year.
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Switch to LED lighting: LED bulbs use 75–80% less energy than old incandescent bulbs and last 25 times longer. Switching a whole house to LEDs typically saves £30–£60/year.
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Wash clothes at 30°C: Reducing your washing machine temperature from 40°C to 30°C cuts energy use by around 40% per cycle. Saves approximately £25–£40/year for regular users.
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Draught-proof doors and windows: Draughts account for up to 20% of heat loss in a typical home. Fitting draught excluders to doors and windows typically costs £50–£100 and saves £50–£150/year.
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Turn off standby appliances: Appliances left on standby can account for up to 10% of household electricity use. Using smart plugs or power strips with switches can save £30–£80/year.
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Loft and cavity wall insulation: Properly insulated homes can save £150–£400/year on heating. ECO4 scheme may fund these improvements for eligible households at no cost.
Smart meter benefits: A smart meter with an in-home display lets you see exactly how much energy you are using in real time, in pounds and pence. Households with smart meters that actively monitor their display save an average of 3% on their energy bills — around £50/year at current prices.
Frequently Asked Questions
What is the Ofgem energy price cap in Q1 2026?
For Q1 2026 (January–March 2026), the Ofgem price cap sets electricity at 24.50p per kWh with a daily standing charge of 61p, and gas at 6.24p per kWh with a daily standing charge of 31p. Based on typical usage, this equates to an average annual bill of approximately £1,738. The price cap is reviewed every quarter.
What is the average UK household energy bill?
The average UK household using Ofgem's typical domestic consumption values (2,900 kWh electricity and 11,500 kWh gas per year) spends approximately £1,738 per year under the Q1 2026 price cap. However, actual bills vary widely: a single person in a flat may spend £700–£900, while a large family in a poorly insulated house could spend £3,000 or more.
What is the difference between the price cap and a total bill cap?
The Ofgem price cap limits the unit rates and standing charges that energy suppliers can charge per kWh — it does NOT cap your total energy bill. If your household uses more energy than the typical amount, you will pay more than the headline cap figure. The cap simply ensures you cannot be charged excessively per unit. To reduce your total bill, you need to reduce your energy consumption.
Who qualifies for the Warm Home Discount?
The Warm Home Discount provides a one-off £150 discount on your electricity bill. Core Group 1 (automatic) includes those receiving the Guarantee Credit element of Pension Credit. Core Group 2 (assessed) includes those on low incomes with high energy costs — the government checks this automatically using data from HMRC and DWP. Not all energy suppliers participate, so check with yours. The discount is applied between October and March each year.
How does Economy 7 work?
Economy 7 is a dual-rate electricity tariff that charges a lower rate for 7 off-peak hours (typically midnight to 7am) and a higher rate during the day. The off-peak rate is roughly 9–12p/kWh vs 26–32p/kWh during the day. It is beneficial if you have storage heaters, an immersion water heater, or an EV that can charge overnight. If more than 40% of your electricity usage falls in the off-peak period, Economy 7 is likely cheaper than a standard tariff.
What is the Cold Weather Payment?
The Cold Weather Payment is an automatic £25 payment for each 7-day period when the average temperature in your local area falls to 0°C or below. It is paid to those receiving Pension Credit, Income Support, income-related ESA, income-based JSA, or Universal Credit with specific conditions (such as having a health condition or disability). You do not need to apply — payments are made automatically, usually within 14 days of the cold weather period.
Will a smart meter reduce my energy bills?
A smart meter itself does not automatically reduce your bills — it measures and reports your usage more accurately, ending estimated billing. However, the in-home display that comes with your smart meter shows your usage in real time in pounds and pence. Research shows that households who actively use their in-home display save an average of 3% on their bills. Smart meters also make it easier to switch tariffs and suppliers, and some tariffs (such as time-of-use tariffs) are only available with a smart meter.