Ofgem Energy Price Cap Rises to £1,723 From October 2026

The October energy price cap is now in effect, with a typical dual-fuel household paying by Direct Debit facing an annualised bill of £1,723.

The cap applies from 1 October to 31 December 2026. Ofgem describes the change as a 4% increase for a typical household, driven by higher wholesale gas prices.

It limits unit rates and daily standing charges on default tariffs in Great Britain. It does not set a maximum total bill. What a household pays still depends on its energy use, location and payment method.

VAT has been removed from domestic electricity bills from 1 October 2026 to 31 March 2027. Gas remains subject to 5% VAT. The electricity relief is already reflected in the published October rates.

Fixed tariffs sit outside changes to capped unit rates. Customers comparing deals should use their own annual consumption and check standing charges, contract length and exit fees.

The next price cap announcement is due by 25 November, covering January to March 2027. Anyone struggling to pay should contact their supplier to discuss support.

Updated 5 October 2026.

Sources: Ofgem and Bank of England.