Energy Price Cap rises 4% to £1,723 from 1 October

Ofgem's cap goes up £60 a year from October, driven by gas. Around 11 million households on fixed deals are unaffected

TaxHub editorial teamLast reviewed 24 September 2026 · 2 min read · Checked against the original announcement

Ofgem's Energy Price Cap rises on 1 October. A typical dual-fuel household paying by direct debit will pay £1,723 a year for the October to December period, up 4% or £60 from the £1,663 cap that ran from July. The rise is almost entirely down to gas: the gas element of the cap is up about 8%, while electricity is up by less than 1%. The new figure already includes the effect of the VAT cut on electricity that starts on the same day.

Key facts: cap £1,723 a year from 1 October to 31 December 2026, up £60 (4%) from £1,663. Gas up about 8%, electricity up under 1%. About 35% of households (around 11 million) are on fixed tariffs and see no change. Standing charges still apply.

Why gas is driving the rise

The conflict in the Middle East has pushed up wholesale oil and gas prices through the summer, and the cap tracks those wholesale costs with a lag. Electricity was spared most of the rise because VAT on domestic electricity drops from 5% to 0% on 1 October, which offsets the higher wholesale cost on that side of the bill.

The cap is not a limit on your total bill. It caps the unit rate and the standing charge. The £1,723 figure is what a household with typical usage would pay across a full year at the new rates.

Who is affected

Anyone on a standard variable tariff, which is most people who have not actively chosen a fixed deal, will see their unit rates change from 1 October. If you pay by direct debit, your supplier may adjust your monthly amount in the coming weeks. Check that any change is in line with a 4% rise and query it if it is not.

Around 35% of households are on fixed tariffs. Their unit rates are locked until the fix ends, so the October rise does not touch them. The one thing that does change for them is the electricity VAT cut, which suppliers must pass on even on fixed deals.

What it means for you

If you are on the capped tariff, take a meter reading on or just before 1 October so your usage before and after the change is billed at the right rates. Smart meter customers do not need to.

A fix priced below the October cap can give you certainty through the winter. Check a comparison site for today's rates and look at exit fees before you commit.

If you are on means-tested benefits, the £150 Warm Home Discount for winter 2026/27 is now automatic for most eligible households.

How we checked this Figures in this guide were taken from the original announcement and were correct on 24 September 2026. Spotted a change or an error? Tell us and we will review it.

About this guide. TaxHub explains how things work; it does not give personal financial advice and is not regulated by the FCA. Figures were correct when written but change often. Check gov.uk or the provider before you act, and get regulated advice for decisions about pensions, mortgages or investments.