Price Cap Rates, Methodology & Sources
Every figure this calculator produces comes from the rates on this page — published by Ofgem, the energy regulator for England, Scotland and Wales.
The rates we use (Direct Debit, GB average)
| Unit rate | Standing charge | VAT included | |
|---|---|---|---|
| Electricity | 26.32p per kWh | 54.83p per day | 0% (see VAT note) |
| Gas | 7.97p per kWh | 29.68p per day | 5% |
Cap period: 1 October to 31 December 2026. Headline cap for a typical Direct Debit household: £1,723 a year (Ofgem). The cap is reviewed every three months, and we update this page when new rates are published.
The VAT note — read this before comparing periods
Ofgem's published figures are the rates that appear on bills, rounded to two decimal places, and they include VAT where it applies. Domestic energy normally carries 5% VAT — that rate is included in the gas figures above. The Government has removed VAT from domestic electricity from 1 October 2026 to 31 March 2027, so the electricity figures for this period include 0% VAT. Because of that change, Ofgem itself notes that costs cannot be compared directly with the previous cap period, and we do not add VAT on top of these rates in any calculation.
Typical usage values (TDCV)
The low / typical / high presets come from Ofgem's Typical Domestic Consumption Values, 2026 review, in force from 1 July 2026: electricity 1,600 / 2,500 / 3,800 kWh a year and gas 6,000 / 9,500 / 14,000 kWh a year (single-rate meters). These are the same values Ofgem uses to turn unit rates into the headline annual figure.
Methodology
For each fuel: annual cost = (annual kWh × unit rate) + (365 × daily standing charge). Monthly is the annual figure divided by 12; daily is it divided by 365. The meter checker uses the same formula over the number of days between your two readings. The appliance tool converts watts and hours into kWh (watts ÷ 1,000 × hours) and multiplies by the electricity unit rate. Results are rounded to the nearest penny for display.
What this calculator cannot do
Rates vary by region, and they are higher if you pay by standard credit and slightly different on prepayment meters. Fixed tariffs are not covered by the price cap at all. Economy 7 and other multi-rate tariffs have split day/night rates that this single-rate calculator does not model. For your exact rates, check your bill or your supplier's tariff information label.
Sources
1. Ofgem — Energy price cap unit rates and standing charges (rates for 1 October to 31 December 2026, opened and verified 25 October 2026).
2. Ofgem — Review of typical domestic consumption values: decision (TDCV figures in force from 1 July 2026).
This is an independent calculator and is not affiliated with Ofgem or any energy supplier.