What Is the Ofgem Price Cap From April 2026?
From 1 April to 30 June 2026, the Ofgem price cap for a typical dual-fuel Direct Debit household is £1,641 a year. According to Ofgem (25 February 2026), average electricity is 24.5p/kWh and average gas is 7.4p/kWh, with the cap down 7% or £117 from the previous quarter.
That figure is not a maximum total bill for every home. It is a cap on unit rates and standing charges for customers on default tariffs, so what you actually pay still depends on how much energy you use.
According to Ofgem (25 February 2026), the average electricity standing charge is 57.21p per day and the average gas standing charge is 29.09p per day between 1 April and 30 June 2026.
If you want the bigger picture first, read our energy bills UK 2026 guide, electricity vs gas cost article, and heat pump running costs guide.
Why Did the Price Cap Fall in April 2026?
The April 2026 cap fell because policy costs were reduced and wholesale prices also eased, although network costs moved upward. According to Ofgem (25 February 2026), recent government decisions on policy costs saved customers an average of £150, while lower wholesale prices reduced bills by around £38 a year.
Ofgem also said network costs increased by about £66 a year because of RIIO-3 investment in energy infrastructure. So the new cap is the result of offsets rather than a simple one-direction trend.
| Main driver | Approximate annual effect |
|---|---|
| Government policy-cost changes | -£150 |
| Lower wholesale costs | -£38 |
| Higher network costs | +£66 |
According to Ofgem (25 February 2026), the April level is more than £200 lower than a year earlier. That is useful relief, but it does not change the basic fact that heating-system efficiency still shapes your annual bill.
What Are the Exact Electricity and Gas Rates?
The headline average rates from 1 April to 30 June 2026 are 24.5p/kWh for electricity and 7.4p/kWh for gas for typical Direct Debit customers on standard variable tariffs. According to Ofgem (25 February 2026), those rates already include VAT at 5%.
These are national averages across England, Scotland and Wales. Your precise regional rate will differ slightly, which is why a local comparison tool or supplier bill still matters when you are modelling running costs.
| Fuel | Average unit rate | Average standing charge |
|---|---|---|
| Electricity | 24.5p/kWh | 57.21p/day |
| Gas | 7.4p/kWh | 29.09p/day |
According to Ofgem’s regional cap page (accessed 2 April 2026), rates vary by region and payment method. For household planning, though, the average figures are the right baseline for comparing one heating technology with another.
What Does the April 2026 Cap Mean for Heat Pumps vs Gas Boilers?
The April 2026 cap narrows the useful-heat comparison more than many people expect, but gas still looks cheaper on a simple per-unit basis. According to Ofgem (25 February 2026), gas is 7.4p/kWh and electricity is 24.5p/kWh, yet a well-designed heat pump can still compete because it moves heat rather than generating it directly.
Using simple useful-heat assumptions:
| System | Assumption | Approx. useful heat cost |
|---|---|---|
| Gas boiler | 90% efficiency | ~7.4p/kWh of heat |
| Heat pump | SPF 3.0 | ~8.2p/kWh of heat |
| Heat pump | SPF 3.5 | ~7.0p/kWh of heat |
According to Energy Saving Trust (2026), heat pumps typically provide three to four units of heat for every unit of electricity used. That is why a properly designed heat pump can be closer to gas than the raw unit price suggests, especially when paired with better controls, solar or time-of-use tariffs.
For the detailed breakdown, see our heat pump vs gas boiler guide and heat pump cost article.
What Should Homeowners Do With the New Cap?
Homeowners should treat the new cap as useful pricing context, not as a reason to ignore system efficiency or future bill risk. According to Ofgem (25 February 2026), the next cap review date is 27 May 2026, which means the numbers can move again within weeks.
The most practical actions are:
- Check whether you are still on a default tariff.
- Compare heating-system efficiency, not just unit rates.
- Review whether solar or battery storage could offset electricity imports.
- Use current rates when comparing a boiler replacement with a heat pump.
According to DESNZ (27 November 2025), the budget package removed average policy costs of around £150 from bills, but there is no guarantee future quarters will repeat that level of reduction. The safest planning assumption is that efficiency still matters.
What Does the April 2026 Cap Mean in London and Surrey?
In London and Surrey, the April 2026 cap mainly changes the short-term arithmetic, not the long-term direction of heating decisions. According to Ofgem (25 February 2026), the electricity price is still more than four times the gas unit rate before efficiency is considered, so local homeowners need a property-specific comparison rather than a generic headline.
That usually means asking:
- Is your current boiler near replacement?
- Is your home suitable for a lower-flow heat pump system?
- Would solar or a battery reduce imported electricity enough to improve the picture?
- Are your radiators and controls ready for electrified heating?
According to MCS (2025), certified heat pump installations reached a record 60,000 in 2024. That tells you more homeowners are already making the switch despite the electricity-gas price gap, because total system design and grant support still matter.
If you are comparing real options for your house, read our is your home suitable for a heat pump guide and heat pump and solar combo guide.
How Electromatic Can Help
If you want to translate the April 2026 cap into a real decision for your house, Electromatic can compare your current heating costs against likely heat pump, solar and battery pathways using current tariff assumptions. According to Ofgem (25 February 2026), the average capped bill is still £1,641 a year, so one headline number still needs property-specific interpretation.
We offer free home surveys across London, Surrey and nearby TW areas, and we can explain how the new cap changes the economics of replacing a boiler, adding solar or planning a phased upgrade. We work under MCS certification via our accredited umbrella partner, and we can handle the BUS grant route where the property qualifies, subject to eligibility.
According to Ofgem (25 February 2026), the cap will be reviewed again on 27 May 2026, so acting on current facts with a proper survey is usually better than delaying for perfect certainty.
Call us: 07718 059 284 | Email: admin@electromatic.uk
Frequently Asked Questions
The April 2026 Ofgem cap gives homeowners a better pricing baseline, but it does not replace a property-specific heat and electricity comparison. According to Ofgem (25 February 2026), the cap is reviewed every three months, which is why these are the practical questions worth asking.
How much is electricity under the April 2026 price cap?
The average electricity rate for a typical Direct Debit customer is 24.5p/kWh, with an average standing charge of 57.21p a day. Regional and payment-method differences still apply.
How much is gas under the April 2026 price cap?
The average gas rate for a typical Direct Debit customer is 7.4p/kWh, with an average standing charge of 29.09p a day. Again, exact regional rates vary.
Can a heat pump still make sense at these prices?
Yes, in many homes it still can, because a heat pump delivers several units of heat per unit of electricity used. The correct comparison is useful heat cost, not raw unit rate alone.
Do I need to change supplier because the cap has fallen?
Not necessarily, but you should still review whether you are on a standard variable tariff or whether a better fixed or specialist tariff is available. The cap is a default-tariff ceiling, not always the cheapest market option.
Is it worth waiting for the next cap review before upgrading my heating?
Usually not if your boiler is ageing or your bills are already high. A proper survey now is often more useful than waiting for another quarterly number change.
The information in this article is for general guidance only and does not constitute financial, legal, or technical advice. Energy savings estimates are based on typical UK household data from the Energy Saving Trust and Ofgem (April 2026 price cap). Actual savings depend on your property type, insulation levels, energy usage patterns, and electricity tariff. The Boiler Upgrade Scheme (BUS) grant of £7,500 is subject to eligibility criteria set by Ofgem — not all properties qualify. Electromatic M&E Ltd operates under MCS certification via an accredited umbrella partner. All installations comply with Building Regulations Part L and MCS standards. E&OE.
Written by Electromatic M&E Ltd — ASHP & Solar installer, London & Surrey (electromatic.uk)
Last updated: April 2026 | Electromatic M&E Ltd, Company No. 13837345
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