Energy price cap:
what you pay now.
The cap rose 4% on 1 October to £1,723 a year for a typical household. Here are the actual rates, what changed, and how to beat it.
The energy price cap is £1,723 a year for a typical dual-fuel household paying by direct debit, from 1 October to 31 December 2026. That is a 4% rise, about £60, on the summer level, with almost all of the increase landing on gas. The cap limits the rates you pay per unit and per day, not your total bill: use more and you pay more. It only applies to standard variable tariffs, and some fixed deals can come in below it.
Gas and electricity prices under the cap
These are the capped rates for 1 October to 31 December 2026 for a direct debit customer, as GB averages. Your exact rates depend on your region.
| Fuel | Unit rate (per kWh) | Standing charge (per day) |
|---|---|---|
| Electricity | 26.32p | 54.83p |
| Gas | 7.97p | 29.68p |
Ofgem price cap rates for 1 October to 31 December 2026, GB average, direct debit. Source: Ofgem. Last updated September 2026.
Standing charges are paid every day regardless of how much energy you use, and they vary far more by region than unit rates do. A dual-fuel household in London pays around £267 a year in standing charges alone, while one in Merseyside and North Wales pays around £357, a £90 gap on identical usage. Our standing charge calculator shows the exact daily rates for your region.
How the cap has changed in 2026
| Cap period | Typical annual bill | Change |
|---|---|---|
| April to June 2026 | £1,641 | Prior level |
| July to September 2026 | £1,663 | Up around 1% |
| October to December 2026 | £1,723 | Up 4% (about £60) |
| January to March 2027 | Announced late December | To be confirmed |
Typical annual bill for a dual-fuel household paying by direct debit, Ofgem typical consumption values. Last updated September 2026.
The October rise fell almost entirely on gas. Electricity was cushioned by a separate change: from 1 October 2026, VAT was removed from domestic electricity, worth roughly £45 a year to a typical household. Without that, the headline increase would have been larger.
What the price cap does and does not do
It caps rates, not your bill
The cap limits what suppliers can charge per kWh and per day in standing charges. There is no limit on your total bill. The £1,723 figure is an illustration for a household with typical usage: use more and you pay more, use less and you pay less.
It only covers standard variable tariffs
If you have never switched, or your fixed deal ended and you did nothing, you are almost certainly on a standard variable tariff and the cap sets your rates. Fixed deals sit outside the cap and are priced by the market, which is why some can beat it.
It changes every three months
Ofgem reviews the cap quarterly, with new levels taking effect on 1 January, 1 April, 1 July, and 1 October. Each level is announced roughly five weeks in advance, so the January 2027 cap lands in late December, mid-winter, when usage is at its peak.
It covers England, Scotland, and Wales
The Ofgem cap applies to Great Britain. Northern Ireland has a separate energy market with its own price regulation. Rates within GB also vary by region and by payment method: direct debit is generally the cheapest way to pay.
Can you pay less than the cap?
Often, yes. The cap is a ceiling on the default tariff, not the market price. Fixed deals are priced independently, and when suppliers compete for switchers, some fixes come in below the cap level. With the cap rising 4% in October and the January review landing mid-winter, a fixed deal at or below £1,723 locks your rates through the two reviews that matter most.
The trade-off is that a fix can leave you above a falling cap, which is why exit fees and contract length matter. Our compare energy tariffs guide covers what to check before fixing, and a postcode comparison shows what is actually available for your home.
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Questions people ask
The energy price cap is a limit set by Ofgem on what suppliers can charge per unit of gas and electricity, and per day in standing charges, on standard variable tariffs in England, Scotland, and Wales. It is reviewed every three months. It caps the rates, not your total bill, so the more energy you use, the more you pay. The widely quoted figure, £1,723 a year from 1 October to 31 December 2026, is what a household with typical usage paying by direct debit would pay at the capped rates.
From 1 October to 31 December 2026, the cap is £1,723 a year for a typical dual-fuel household paying by direct debit. That is a 4% rise, about £60, on the July to September level of £1,663, with almost all of the increase landing on gas rates.
Under the cap for 1 October to 31 December 2026, electricity costs an average of 26.32p per kWh with a standing charge of 54.83p per day, for a direct debit customer. Gas costs an average of 7.97p per kWh with a standing charge of 29.68p per day. These are GB averages: your exact rates depend on your region and payment method.
No. The cap limits the unit rates and standing charges, not the total amount you can be billed. If you use more energy than the typical household, you pay more than £1,723. If you use less, you pay less. The headline figure is only an illustration based on typical consumption.
The next cap takes effect on 1 January 2027 and is usually announced by Ofgem in late December. The cap is reviewed every quarter, with changes taking effect on 1 January, 1 April, 1 July, and 1 October each year.
Often, yes. The cap only applies to standard variable tariffs. Fixed deals are priced separately and some can come in below the cap level. Comparing by postcode shows what is available for your home, and fixing at or below the cap locks your price against future quarterly reviews.
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