Energy Price Cap October 2026: What the 4% Rise Means for Your Bills
Last updated: 30 September 2026
The energy price cap rises by 4% on 1 October 2026. Ofgem says a typical household paying by direct debit for gas and electricity will pay £1,723 a year, up from £1,663. That’s about £60 more a year, or around £5 a month. The new cap runs until 31 December 2026.
New energy price cap rates from 1 October 2026
Here’s what you need to know:
These are the GB average rates for customers on a standard variable tariff paying by direct debit:
| Unit rate | Standing charge | |
|---|---|---|
| Electricity | 26.32p per kWh | 54.83p per day |
| Gas | 7.97p per kWh | 29.68p per day |
Your exact rates depend on your region and how you pay. The cap limits the unit rate and standing charge, not your total bill. If you use more energy, you pay more.
Why are energy bills going up?
Ofgem says the main reason is higher wholesale gas prices, linked to the conflict in the Middle East. The regulator also points to the government’s removal of VAT on domestic electricity, which has kept electricity bills broadly stable. Most of the rise therefore falls on gas, where bills increase by about 8%.
Who is affected?
- Affected: households on a standard variable (“default”) tariff in England, Scotland and Wales.
- Not affected right now: the roughly 11 million households on a fixed tariff. Your rates stay the same until your fix ends.
- Northern Ireland has a separate energy market and isn’t covered by the Ofgem price cap.
Five ways to cut your energy costs this winter
- Compare fixed deals. Ofgem says some fixed tariffs are available at £100 or more below the cap. Check exit fees and the length of the fix before switching.
- Submit meter readings on 1 October (or have your smart meter send them) so you aren’t charged the new rates for energy used before the change.
- Use off-peak tariffs if you have a smart meter. Some suppliers offer cheaper electricity at night or at quiet times.
- Check your direct debit. If it looks too high or too low for your usage, ask your supplier to review it.
- Ask for help early. If you’re struggling to pay, contact your supplier. They must offer affordable repayment plans. You may also be able to get grants from supplier hardship funds.
When will the price cap change next?
Ofgem reviews the cap every three months. The next period starts on 1 January 2027, and the new level is usually announced towards the end of November. We will update this page when Ofgem confirms it.
Frequently asked questions
Is the energy price cap a limit on my total bill?
No. It caps the price per unit of energy and the daily standing charge. The £1,723 figure is only an example based on typical use.
Should I fix my energy tariff now?
It depends on the deal and on your circumstances. A fix gives certainty but may have exit fees. Compare the fixed rates against the cap rates above before deciding.
Does the price cap apply to prepayment meters?
Yes. Prepayment customers are covered too, and Ofgem says prepayment rates can work out cheaper than direct debit.
Sources: Ofgem – Energy price cap will rise by 4% from October 2026; Ofgem – Changes to the energy price cap, 1 October to 31 December 2026.