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The energy price cap explained (October–December 2026)
From 1 October to 31 December 2026 the cap limits electricity to an average 26.32p per kWh plus 54.83p a day, and gas to 7.97p per kWh plus 29.68p a day, for Direct Debit customers on default tariffs.
The current rates
| Unit rate | Standing charge | |
|---|---|---|
| Electricity | 26.32p/kWh | 54.83p/day |
| Gas | 7.97p/kWh | 29.68p/day |
GB averages, Direct Debit, 1 October to 31 December 2026. Gas includes 5% VAT. No VAT on electricity 1 Oct 2026 to 31 Mar 2027. Rates differ by region. See our regional table.
What does it mean for a typical bill?
Using Ofgem's current typical (medium) usage of 2,500 kWh of electricity and 9,500 kWh of gas a year:
- Electricity: 2,500 × 26.32p + 365 × 54.83p = £858
- Gas: 9,500 × 7.97p + 365 × 29.68p = £865
- Total: about £1,724 a year at these rates
Your bill depends on how much you actually use. The cap limits the price per unit and per day, not the total bill.
What the cap does and doesn't cover
- Covers: standard variable (default) tariffs in England, Scotland and Wales, including Economy 7 and prepayment. Fixed tariffs aren't capped, but you agreed their price in advance.
- Doesn't cover: Northern Ireland, business energy, or tariffs like Octopus Agile and Flux. See Agile vs Flux.
- Updated: every three months. Ofgem announces each new cap about five weeks before it starts. The next period begins on 1 January 2027.
Work out your own costs
- What a single appliance costs: appliance running cost calculator
- Plug-in heaters this winter: electric heater running cost calculator
- Whether Economy 7 suits you: Economy 7 calculator
- Smart and EV tariffs against the cap: smart tariff comparison
FAQs
What is the energy price cap from October 2026?
From 1 October to 31 December 2026: electricity 26.32p/kWh with a 54.83p daily standing charge, and gas 7.97p/kWh with a 29.68p daily standing charge (GB averages, Direct Debit).
Does the price cap limit my total bill?
No. It caps the unit rate and standing charge. Use more energy and you pay more.
Is there VAT on electricity now?
From 1 October 2026 to 31 March 2027, domestic electricity carries no VAT. Gas still carries 5% VAT. Ofgem's capped figures already reflect this.
Should I fix my energy tariff?
Only if a fixed deal is competitive with the expected cap over its term and the exit fees suit you. Compare the yearly cost using your own usage, not just the headline unit rate.
Related calculators
Standing charges explained
Appliance running cost calculator
Economy 7 calculator
Smart tariff comparison
Sources
- Ofgem – Energy price cap unit rates and standing charges (1 Oct–31 Dec 2026)
- Ofgem – Changes to the energy price cap, 1 October to 31 December 2026
- Ofgem – Summary of changes to the energy price cap, 1 October to 31 December 2026
- Ofgem – Typical domestic consumption values (2026)
Estimates only, not financial advice. Results use average UK figures and the assumptions shown. Your real costs depend on your home, tariff, region and installer quotes. Always get several quotes from certified installers and check current tariff rates before deciding. Don't rely on these results alone: see our disclaimer.