From 1 October to 31 December 2026 the energy price cap is £1,723 a year for a household with typical use paying by direct debit, 4% higher than the July to September level of £1,663. The cap limits the price of each unit and each day of connection, not the size of the bill, so what you pay depends on what you use. The figures below are Ofgem’s averages for Great Britain, and the energy price cap calculator applies them to your own consumption.
The rates behind the £1,723
| Charge | Direct debit average, October to December 2026 |
|---|---|
| Electricity unit rate | 26.32p per kWh |
| Electricity standing charge | 54.83p per day |
| Gas unit rate | 7.97p per kWh |
| Gas standing charge | 29.68p per day |
Ofgem’s headline figure is those four rates applied to its typical domestic consumption values for 2026: 2,500 kWh of electricity and 9,500 kWh of gas a year. Multiply out and the electricity comes to £858, the gas to £865, and the total to £1,723. The standing charges alone are £308 a year, about 18% of the typical bill, and they are paid regardless of use.
Households paying by standard credit, meaning cash or cheque on receipt of a bill, are charged more, with a typical figure of £1,861. Prepayment meter customers pay slightly less than direct debit, at £1,678. The rates also vary by region, mainly through the standing charges, so a supplier’s quote for a particular postcode will differ from the averages by a few pounds a year.
What changed from October
Ofgem attributes the 4% rise mainly to wholesale costs: the gas wholesale allowance rose by 13% and the electricity wholesale allowance by 10% compared with the previous quarter. Working against that, the government reduced VAT on electricity bills from 5% to zero from 1 October 2026, so the electricity figures above carry no VAT. The gas figures are as Ofgem publishes them.
The cap is reset every three months. The next level applies from 1 January 2027 and is normally announced about five weeks beforehand. A yearly figure such as £1,723 therefore describes an annualised rate for the current quarter, not a prediction of the year’s bills.
What your own bill looks like
The typical values are a benchmark, not a forecast for any particular home. Three examples at the October rates:
| Household | Electricity | Gas | Yearly cost |
|---|---|---|---|
| Ofgem typical use | 2,500 kWh | 9,500 kWh | £1,723 |
| Larger or older house | 4,000 kWh | 14,000 kWh | £2,477 |
| All-electric flat, no gas supply | 4,000 kWh | none | £1,253 |
The all-electric flat avoids the gas standing charge entirely but pays the higher electricity unit rate for its heating, which is why electric heating on a standard tariff tends to cost more per unit of warmth than gas. Your annual kWh figures are on your supplier’s annual statement or in its app; gas is sometimes billed in cubic metres, which the supplier converts.
Does the cap apply to you?
The cap applies to standard variable tariffs in England, Scotland and Wales, which is where most households who have never switched or whose fixed deal has ended will be. It does not apply to fixed-rate tariffs, which can be above or below the capped rates; the way to compare a fixed offer is to set its unit rate and standing charge against the figures in the first table. Northern Ireland has a separate regulator and is not covered. Economy 7 and other multi-rate meters have their own capped rates, with a typical direct debit figure of £1,046 for the electricity-only Economy 7 case.
Reducing the bill without changing supplier
Because the cap fixes the price per unit, the bill moves with consumption. At the October rates each 100 kWh of gas costs £7.97 and each 100 kWh of electricity £26.32, so the electricity side rewards attention first: heating water, tumble drying and electric heating are the large electricity loads in most homes. Standing charges cannot be reduced by using less, only by changing tariff or, for a home with an unused gas supply, by having it disconnected. The family budget calculator shows where a lower energy figure lands in the monthly picture.
Common questions
What is the energy price cap from 1 October 2026? £1,723 a year for typical use paying by direct debit, £1,861 by standard credit and £1,678 on a prepayment meter. It runs to 31 December 2026.
Is £1,723 what I will pay? Only if you use exactly Ofgem’s typical amounts of electricity and gas. The cap sets the price of each unit; your bill is your usage at those prices plus the standing charges.
What is the electricity unit rate under the cap? 26.32p per kWh on average for direct debit customers, with a standing charge of 54.83p a day, carrying no VAT from October 2026.
What is the gas unit rate under the cap? 7.97p per kWh on average, with a standing charge of 29.68p a day.
Why has the cap gone up? Mainly wholesale energy costs, which Ofgem’s allowances put up by 13% for gas and 10% for electricity against the previous quarter. The cut in VAT on electricity to zero offset part of the increase.
When does the cap change again? On 1 January 2027, with the level announced in late November 2026.
Information, not financial advice. Rates and levels are Ofgem’s published Great Britain averages for direct debit customers for 1 October to 31 December 2026, from Ofgem’s announcement and its summary letter. Regional rates, payment methods and tariffs differ, so check your own bill or supplier before acting on them.