OFGEM PRICE CAP · OCTOBER–DECEMBER 2026
Energy price cap: October–December 2026
From 1 October 2026 to 31 December 2026, Ofgem’s price cap puts a typical dual-fuel Direct Debit bill at £1,723 a year in England, Scotland and Wales, up 4% (£60) from £1,663.
TYPICAL BILL
£1,723a year, dual fuel, Direct DebitELECTRICITY
26.32pper kWh + 54.83p a day (GB average)GAS
7.97pper kWh + 29.68p a day (GB average)NEXT CAP ANNOUNCED
25 Nov 2026for January–March 2027What the price cap is
The price cap is the maximum unit rate and daily standing charge a supplier can charge on a standard variable (default) tariff. It is not a cap on your total bill: you pay for every kilowatt-hour you use, so a household that uses more energy pays more. Ofgem reviews the cap every three months.
Your cap level depends on your region, how you pay and your meter. Fixed tariffs, business contracts, heating oil and heat networks sit outside the cap.
GB average rates
Ofgem’s average Direct Debit rates across England, Scotland and Wales are 26.32p per kWh for electricity with a 54.83p daily standing charge, and 7.97p per kWh for gas with a 29.68p daily standing charge.
| Fuel | Unit rate (p/kWh) | Standing charge (p/day) | VAT | Typical annual cost |
|---|---|---|---|---|
| Electricity | 26.32 | 54.83 | 0% | £858 |
| Gas | 7.97 | 29.68 | 5% included | £865 |
Price cap rates by region
At typical use, East Midlands has the lowest dual-fuel cost under this cap (£1,672 a year) and Merseyside and Northern Wales the highest (£1,805). Electricity standing charges range from 42.92p a day in London to 67.66p in Merseyside and Northern Wales. Select a region for its full breakdown.
| Region | Electricity unit rate (p/kWh) | Electricity standing charge (p/day) | Gas unit rate (p/kWh) | Gas standing charge (p/day) | Typical dual-fuel cost (£/year) |
|---|---|---|---|---|---|
| East Midlands | 25.36 | 51.45 | 7.82 | 29.41 | £1,672 |
| Eastern England | 26.61 | 51.84 | 7.91 | 29.34 | £1,713 |
| London | 26.60 | 42.92 | 8.15 | 30.20 | £1,706 |
| Merseyside and Northern Wales | 27.86 | 67.66 | 7.91 | 30.08 | £1,805 |
| North Eastern England | 25.46 | 61.58 | 7.92 | 29.79 | £1,722 |
| North Western England | 26.49 | 45.68 | 7.86 | 29.81 | £1,684 |
| Northern Scotland | 26.35 | 55.14 | 7.87 | 29.87 | £1,717 |
| South Eastern England | 26.88 | 52.32 | 8.05 | 29.26 | £1,735 |
| South Western England | 26.58 | 55.58 | 8.12 | 29.31 | £1,746 |
| Southern England | 26.47 | 47.81 | 8.17 | 29.16 | £1,719 |
| Southern Scotland | 26.11 | 61.41 | 7.87 | 29.89 | £1,734 |
| Southern Wales | 26.55 | 55.41 | 8.09 | 29.96 | £1,744 |
| West Midlands | 25.60 | 57.23 | 7.90 | 29.71 | £1,708 |
| Yorkshire | 25.60 | 61.67 | 7.90 | 29.77 | £1,724 |
| GB average | 26.32 | 54.83 | 7.97 | 29.68 | £1,724 |
How you pay changes the cap
The figures on this page are for Direct Debit. Ofgem sets different cap levels for other payment methods. At typical use, the cap levels for October–December 2026 are:
| Payment method | Previous cap | Oct–Dec 2026 | Change |
|---|---|---|---|
| Direct Debit | £1,663 | £1,723 | 4% |
| Standard Credit | £1,796 | £1,861 | 4% |
| Prepayment | £1,620 | £1,678 | 4% |
| Economy 7 (Direct Debit, electricity only) | £1,039 | £1,046 | 1% |
What happens next
Ofgem will announce the cap for 1 January 2027 to 31 March 2027 by 25 November 2026. The following announcements are due by 23 February 2027 and 26 May 2027. Ofgem may publish earlier if external factors require it.
The 0% VAT rate on household electricity runs until 31 March 2027. What the VAT cut saves →
Frequently asked questions
Does the price cap limit my total bill?
No. The cap limits the unit rate and daily standing charge a supplier can charge on a default tariff. It does not cap the total you pay: the more energy you use, the higher your bill. The £1,723 figure is a typical bill at Ofgem’s typical use, not a maximum.
Why is VAT 0% on electricity?
The government has temporarily removed VAT from household electricity in Great Britain from 1 October 2026 to 31 March 2027. Electricity unit rates and standing charges in this cap period therefore carry 0% VAT. Gas still includes 5% VAT.
Is my fixed tariff covered by the price cap?
No. Ofgem says customers who have switched to a fixed-rate tariff are not affected by the cap changes; your rates are set by your contract. Ofgem adds that the VAT removal on electricity also applies to fixed tariffs, with suppliers applying it automatically.
What is the standing charge?
A standing charge is a fixed daily amount on your tariff. It applies even on days when you use no energy. The GB average Direct Debit standing charge is 54.83p a day for electricity and 29.68p a day for gas, about £308 a year for both before you use any energy.
Why do prices differ by region?
Ofgem sets a separate cap level for each of 14 regions in Great Britain, so unit rates and standing charges vary with where you live. This period, electricity standing charges range from 42.92p a day in London to 67.66p in Merseyside and Northern Wales.
When will the next price cap be announced?
Ofgem will announce the cap for 1 January 2027 to 31 March 2027 by 25 November 2026. It reviews the cap every three months and may publish earlier if external factors require it.
Does the price cap apply in Northern Ireland?
No. Ofgem’s price cap covers England, Scotland and Wales. Northern Ireland is not one of the 14 cap regions and is not included in these figures.
About these figures
Regional rates are derived from Ofgem’s published annual cap levels, which are rounded to the penny, so they can differ from a supplier’s tariff by a fraction of a penny. Annual costs are calculated from the two-decimal rates, so the GB-average total (£1,724) can differ by about £1 from Ofgem’s own rounded £1,723. These are benchmarks for default tariffs, not quotes.
Sources
- Ofgem: energy price cap will rise by 4% from October 2026 ↗Headline typical bill and change. Published 26 August 2026.
- Ofgem: energy price cap unit rates and standing charges ↗GB average Direct Debit rates and VAT basis.
- Ofgem: cap tables, October–December 2026 (PDF) ↗Regional annual charges used to derive each region’s rates.
- Ofgem: summary of changes to the energy price cap (PDF) ↗Typical bills by payment method.
- Ofgem: changes to the energy price cap, 1 October to 31 December 2026 ↗Announcement timetable and fixed tariffs.
- Ofgem: energy price cap and standing charges explained ↗
- GOV.UK: Breathing space on your energy bill ↗
Last updated 11 October 2026. Figures are dated benchmarks taken from the sources above. How we use sources →