A smart meter communications hub fitted in a UK home, the unit that sends meter readings to the supplier

Energy bills

The energy price cap, VAT on electricity and smart tariffs explained, with a focus on what they mean for EV drivers and electric homes.

Energy prices change every three months under the Ofgem price cap, and VAT on household electricity in Great Britain is zero until 31 March 2027. This section explains what that means for you.

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Key dates

  • 25 November 2026: Ofgem announces the cap for January to March 2027.
  • 31 March 2027: temporary zero rate of VAT on household electricity in Great Britain ends.

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Image credit: SpicyPhoto via Wikimedia Commons, CC0, cropped.