By the Numbers
By the Numbers: Rebuild the July 2026 Energy Cap From Unit Rates
Ofgem's July rates become a worked electricity-and-gas bill, showing why the price cap limits rates rather than a household's total.
Ofgem's current energy price-cap figures are often described as an annual bill. The more useful way to read them is as two separate prices for each fuel: a unit rate for what a household uses and a daily standing charge for being connected.
This article rebuilds an illustrative bill with the UK Energy Bill Calculator. It shows why the cap is not a limit on the total amount a household can pay.
The story number
For a typical customer paying by Direct Debit, Ofgem's energy price cap unit rates and standing charges list these Great Britain averages for 1 July to 30 September 2026:
| Fuel | Unit rate | Daily standing charge |
|---|---|---|
| Electricity | 26.11p per kWh | 57.19p per day |
| Gas | 7.33p per kWh | 29.04p per day |
The figures include VAT. Ofgem also makes clear that actual rates can vary by region, payment method and meter type.
The number to run
For each fuel:
`usage charge = kWh used × unit rate`
`standing charge = billing days × daily standing charge`
The total is the electricity usage charge, gas usage charge and both standing charges added together.
The assumptions
Our annual worked example uses:
- 2,400 kWh of electricity
- 11,500 kWh of gas
- 365 billing days
- Ofgem's average Direct Debit rates above
- no discounts, arrears, account credits or optional add-ons
These are sample inputs, not a claim about typical consumption.
Run the numbers
Electricity:
- Usage: 2,400 × £0.2611 = £626.64
- Standing charge: 365 × £0.5719 = £208.74
- Electricity total: £835.38
Gas:
- Usage: 11,500 × £0.0733 = £842.95
- Standing charge: 365 × £0.2904 = £106.00
- Gas total: £948.95
The combined annual estimate is therefore £1,784.33.
| Example usage | Electricity | Gas | Combined estimate |
|---|---|---|---|
| 1,800 kWh electricity; 7,500 kWh gas | £678.72 | £655.75 | £1,334.47 |
| 2,400 kWh electricity; 11,500 kWh gas | £835.38 | £948.95 | £1,784.33 |
| 3,200 kWh electricity; 15,000 kWh gas | £1,044.26 | £1,205.50 | £2,249.76 |
Every row uses the same capped average rates. Usage is what changes the total.
What the result means
In the middle example, the two standing charges add up to about £314.74 a year before a single unit of energy is used. The remaining £1,469.59 is linked to the sample consumption.
That split explains two common points of confusion:
- The price cap controls maximum default-tariff rates, not a household's final bill.
- A percentage change in a published “typical bill” will not produce the same pound change for every household.
Try your own numbers
Open the UK Energy Bill Calculator and use the kWh figures from a recent statement. Enter the rates and standing charges shown on the same statement for the most relevant estimate.
To compare two offers under identical usage, use the UK Energy Tariff Comparison Calculator. The Percentage Increase Calculator can show how one annual estimate differs from another.
Caveats and source notes
- Ofgem's displayed figures are Great Britain averages for Direct Debit and include VAT.
- Regional rates, prepayment rates, standard-credit rates and multi-rate electricity tariffs differ.
- A billing period may contain a rate change, so one quarterly rate should not automatically be applied to a whole year.
- This is an educational estimate, not a quote, tariff recommendation or statement of what any household should pay.
Source: Ofgem, Energy price cap unit rates and standing charges, accessed 24 July 2026.
