October 2026 Energy Price Cap: What Changes for Electricity Bills

The new electricity rates from 1 October

For a household paying by Direct Debit on a standard variable tariff, Ofgem’s average electricity unit rate will be 26.32 pence per kilowatt hour from 1 October to 31 December 2026. The average daily electricity standing charge will be 54.83 pence.

In the previous quarter, the corresponding averages were 26.11 pence per kWh and 57.19 pence per day. The unit rate therefore rises by 0.21 pence per kWh, while the standing charge falls by 2.36 pence per day.

These are averages across England, Scotland and Wales. Your actual capped rates depend on your region, payment method and meter type, so use the tariff notice from your own supplier when estimating a bill.

Why the headline cap rises while electricity barely changes

The £1,723 figure is an illustration for a typical household using both gas and electricity and paying by Direct Debit. It is not a maximum total bill. A household that uses more energy pays more, while one that uses less pays less.

Ofgem says the increase from £1,663 to £1,723 is driven mainly by higher gas costs. It estimates that households without gas will see a much smaller increase of less than 1%.

The government’s temporary removal of VAT from domestic electricity is reflected in the new electricity rates. Ofgem says there will be no VAT on domestic electricity between 1 October 2026 and 31 March 2027. Gas continues to include 5% VAT during this period.

Does the price cap apply to you?

The cap protects households on standard variable or default tariffs. It limits the unit rate and standing charge a supplier can apply together; it does not cap the final amount shown on your bill.

If you are on a fixed tariff, the price-cap rate change itself does not replace the rates you agreed. Ofgem says the electricity VAT reduction will also be applied automatically to customers on fixed tariffs.

• Direct Debit, standard-credit and prepayment customers can all be covered, but their capped rates differ.
• Economy 7 and other multi-rate tariffs have separate peak and off-peak prices rather than the single-rate average above.
• Northern Ireland has a separate energy market and is not covered by Ofgem’s Great Britain price cap.
• Business contracts, heat networks and heating oil are not protected by this domestic cap.

What to check before the change

Your supplier should tell you the rates that will apply from 1 October. Keep that notice or download it from your online account, because those exact figures are more useful than the national averages.

A meter reading taken close to the changeover gives your supplier a clear point at which to separate use charged at the old rate from use charged at the new rate. Submit it through the normal supplier app, website or telephone service and keep a dated photograph for your records.

• Check the new electricity unit rate in pence per kWh.
• Check the new daily standing charge.
• Confirm whether you are on a fixed or variable tariff.
• For Economy 7, record both meter registers and both new unit rates.
• Compare any fixed-tariff offer using the complete annual estimate, exit fees and contract length rather than the unit rate alone.

Estimate the effect on your own bill

To estimate a period under the new tariff, subtract the earlier meter reading from the later one, multiply the electricity used by your new unit rate, and then add the standing charge for every day in the period.

If a billing period crosses 1 October, the most accurate approach is to split the calculation at a meter reading taken on or near the change date. Run one estimate using the old rates and a second using the new rates.

Remember that a winter bill may still be higher even when tariff rates barely move, simply because lighting, heating and appliances are used for longer. The rate and the amount of electricity used are separate parts of the calculation.

If you are struggling to pay

Contact your supplier as early as possible rather than waiting for arrears to grow. Ofgem says suppliers should work with customers on affordable repayment plans and explain available financial support. Avoid reducing essential heating, lighting, refrigeration or medical equipment to unsafe levels.