The energy price cap from October to December 2026: what it limits and what it does not
Published · 3 min read · Figures checked . UK rules and rates change, so check the official sources below before you act.
The energy price cap limits the rates suppliers can charge on standard variable tariffs. This guide explains what the cap covers, the figures Ofgem set for 1 October to 31 December 2026, who is not covered, and when the next level is due.
What the price cap is
The price cap is set by Ofgem, the energy regulator. It is the most a supplier can charge for each unit of energy and for the daily standing charge. It is a limit on rates, not on your total bill. If you use more energy, your bill is higher, even when the rates stay the same.
Ofgem reviews the cap every three months. The current period runs from 1 October to 31 December 2026, and Ofgem announced it on 26 August 2026.
The figures for 1 October to 31 December 2026
For a typical household that pays by Direct Debit and uses both gas and electricity, Ofgem says the cap rose by 4 percent. Its press release gives the annual figure as £1,723, which is £60 a year more than the previous level of £1,663. A typical bill is only an illustration. Your own bill depends on how much energy you use.
Ofgem also publishes the average unit rates and standing charges for Direct Debit customers. These are averages across England, Scotland and Wales, so they do not show differences between regions.
Why VAT matters this winter
Ofgem says the government has removed VAT from domestic electricity, which is normally charged at 5 percent, from 1 October 2026 to 31 March 2027. Gas keeps its 5 percent VAT, and the gas figures above include it. Ofgem says that without the electricity VAT change the rise would have been about £45 higher. It also says gas bills rise by 8 percent, while the rise for homes without gas is less than 1 percent.
Who the cap applies to
- Households on a standard variable tariff, also called a default tariff. Ofgem says the cap protects these.
- Customers who pay by Direct Debit, standard credit or prepayment. Each has its own cap level, and Ofgem says prepayment and Direct Debit customers pay the same standing charge.
Ofgem says that around 22 million households are on default tariffs that the cap covers.
Who the cap does not apply to
- People on a fixed tariff. Ofgem says about 35 percent of households, around 11 million, are on fixed tariffs and are not affected by this change. The price on a fixed tariff is agreed with the supplier for the length of the deal.
- Businesses, and people on heat networks or heating oil.
- This guide uses Ofgem's figures for England, Scotland and Wales. Northern Ireland has a different energy regulator, so readers there can check the Utility Regulator or Citizens Advice Northern Ireland.
What happens next
Ofgem says it will announce the levels for 1 January to 31 March 2027 on 25 November 2026. Until then, the figures above stay in place for the current period.
Free help
People who struggle to pay energy bills can speak to their supplier and to Citizens Advice, which gives free and impartial help. This is general information, not personal advice, and it does not suggest what any reader should do.
Check before you act
Rates and rules change every quarter. It can be worth checking the official Ofgem pages linked below, and your own bill, before relying on any figure here.
Sources
For information only. See our disclaimer and editorial standards. Spotted an error? Tell us.
