Energy price cap: October to December 2026

The current price cap at a glance

Ofgem points out the periods can’t be compared directly, because electricity now carries no VAT while gas still has 5%. Gas bills are up around 8% while electricity is broadly flat.

Sources: Ofgem: price cap unit rates and standing charges · Ofgem: energy price cap will rise by 4% from October 2026.

Why prices went up in October

Ofgem says the rise is driven by higher wholesale gas prices linked to the conflict in the Middle East, with wholesale costs up about 11% over the three months it assessed. Without the government’s VAT cut on electricity, Ofgem estimates the increase would have been around £45 higher. Even so, prices are about 52% below the peak of the 2022 energy crisis.

Ofgem also lowered its “typical” consumption benchmark, because households now use about 7% less electricity and 17% less gas than before. That makes the headline figure lower, but doesn’t change what you pay per unit.

What the price cap does and doesn’t do

• It caps rates, not bills. The cap limits the unit rate and standing charge on standard variable (default) tariffs. Use more energy and you’ll pay more than £1,723.
• It varies by region. Standing charges differ a lot: London has some of the lowest and North Wales & Mersey some of the highest. Ofgem publishes the cap for each region.
• It varies by how you pay. Prepayment currently has the lowest cap rates; paying on receipt of a bill (standard credit) costs more than Direct Debit.
• Fixed deals aren’t affected. If you fixed before October, your rates stay as agreed until the fix ends.

What could happen in January 2027?

Ofgem normally announces the next cap around five weeks before it starts, so the January to March 2027 cap is expected in late November 2026. Until then, the figures below are forecasts, not prices:

• Cornwall Insight’s forecast of 23 September put the January cap at around £1,872 a year using Ofgem’s current consumption figures.
• Other forecasters have published higher estimates, depending on their view of wholesale gas prices.

If forecasts point up, a fixed deal priced at or below today’s cap can protect you. Compare the fix against both the current cap and the forecast, and check the exit fee. See how to compare energy deals.

Also on the calendar: the Autumn Budget on 28 October 2026 and the end of the 0% VAT rate on electricity on 31 March 2027, unless it’s extended. Follow every date in what’s changing.

Price cap history

Last updated: 15 October 2026