Energy price cap UK — what it is and what you’ll pay

Answer: The Ofgem energy price cap limits the unit rates and standing charges suppliers can charge on default (standard variable) tariffs in Great Britain. It does not cap your total bill using more energy still costs more.

Current (1 October – 31 December 2026): about £1,723 a year for a typical Direct Debit dual-fuel household.
Previous (1 July – 30 September 2026): about £1,663 a year (the October level is roughly 4% higher / about £60 a year).

Last reviewed: 1 October 2026 · Figures from Ofgem

Energy price cap at a glance

Ofgem updates the cap every three months. The annual “typical bill” figures below use Ofgem’s 2026 Typical Domestic Consumption Values (TDCV): about 2,500 kWh electricity and 9,500 kWh gas for a medium dual-fuel household. Your bill will differ with usage, region, meter type and payment method.

Around 22 million households on default tariffs are protected by the cap. Fixed-rate deals sit outside it — your contracted rates apply until the fix ends.

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Energy price cap per kWh: October–December 2026 (electricity and gas)

Short answer: from 1 October to 31 December 2026, Ofgem’s price cap works out at a GB average of 26.32p per kWh for electricity (standing charge 54.83p a day) and 7.97p per kWh for gas (standing charge 29.68p a day). These are averages across England, Scotland and Wales for customers paying by Direct Debit on a default (standard variable) tariff. Electricity figures for this period include no VAT; gas includes VAT at 5%. Your own rates depend on your region and meter, so check your bill or Ofgem’s regional rates. Source: Ofgem, 26 August 2026.

National averages across England, Scotland and Wales for customers paying by Direct Debit on a default tariff. Regional rates differ — use Ofgem’s postcode tables for your area.

VAT note (Ofgem): For 1 July – 30 September 2026, averages include VAT at 5% on electricity and gas. From 1 October 2026 to 31 March 2027, there is no VAT on domestic electricity; gas still includes VAT at 5%. Because of this change, unit rates and standing charges cannot be compared directly period-to-period without allowing for VAT.

For the full GB electricity zero-rate rules (who qualifies, prepayment, fixed deals and Northern Ireland), see our guide to VAT on electricity bills from October 2026.

Typical annual levels by payment method

Ofgem also publishes typical annual levels (same TDCV medium consumption) for other payment types. These are illustrative “if sustained for a year” figures for default tariffs — not a promise of your bill.

Source: Ofgem summary of changes for 1 October – 31 December 2026 (TDCV 2026 medium consumption). Economy 7 uses a different typical consumption assumption (multi-register). For off-peak times and storage heaters, see Economy 7 explained.

Energy price cap history (2022–2026)

Typical annual Direct Debit dual-fuel levels as Ofgem published them for each period. Ofgem changed its typical-use assumptions (TDCV) in October 2023 and again in July 2026, so figures either side of those dates are not on exactly the same basis. From October 2022 to June 2023 the Government’s Energy Price Guarantee limited what a typical household actually paid to about £2,500 a year, even though the cap level was higher.

Sources: Ofgem summary-of-changes letters and press releases for each period, listed on Ofgem’s price cap levels page.

Who does the Ofgem price cap protect?

You are covered if you are on a default / standard variable tariff (SVT) and pay by Direct Debit, standard credit or prepayment, including many Economy 7 customers. The cap sets maximum unit rates and standing charges — not a fixed total bill.

Payment method also moves the typical capped level: under the October 2026 default tariff cap, prepayment sits about £45 below Direct Debit at medium use — see prepayment vs Direct Debit October 2026.

• Fixed tariffs: outside the cap; rates stay as contracted until the fix ends.
• Region and meter: your exact capped rates depend on where you live and your meter type.
• Business energy: the domestic price cap does not set commercial prices — use business energy comparison.

If you or your partner get Pension Credit, Universal Credit, Housing Benefit or income-related ESA, you may also qualify for £150 off your electricity bill this winter. See our Warm Home Discount 2026/27 guide for who qualifies and when it is paid.

Does the price cap mean you should not switch?

Not necessarily. The cap is a safety net for default tariffs, not always the cheapest option. When competitive fixed deals undercut capped SVT rates (after any exit fees), switching can still save money. Ofgem has noted that fixed tariffs are often available below the October capped level — always check live quotes with your own usage. For a winter-timing checklist on fixing versus staying on the capped SVT, see should I fix my energy deal before winter 2026. To test a specific quote against today’s capped rates, try our fix vs price cap calculator.

Start a comparison · How to switch energy supplier · Finding cheaper energy deals

Standing charges vs unit rates (per kWh)

Standing charges are daily fixed fees; unit rates are charged per kWh used. Both are capped on default tariffs. High standing charges hit low users harder; high unit rates hit high users harder — which is why personalised comparison beats a headline “typical bill”.

For a deeper look at why electricity standing charges fell while gas rose in October 2026 — including regional spread and low-user impact — see our guide to standing charges October 2026.

Search interest in “energy price cap per kWh and “October price cap unit rates” usually means these average Direct Debit figures — your supplier bill or Ofgem’s regional tables are the authoritative source for your rates.

Frequently asked questions

What is the UK energy price cap right now?

As of 30 September 2026, the current Ofgem price cap period is 1 October – 31 December 2026, with a typical Direct Debit dual-fuel level of about £1,723 a year. The previous period, 1 July – 30 September 2026, was about £1,663 a year. Exact unit rates and standing charges vary by region and payment method.

January–March 2027: Ofgem has not set the rates; they are due by 25 November 2026. Cornwall Insight forecasts are scenarios, not official Ofgem rates — see our January 2027 forecast vs Ofgem guide.

What is the Ofgem price cap per kWh from October 2026?

For Direct Debit default tariffs, Ofgem’s GB average from 1 October – 31 December 2026 is about 26.32p/kWh for electricity and 7.97p/kWh for gas, with average standing charges of about 54.83p/day (electricity) and 29.68p/day (gas). Electricity figures for this period do not include VAT; gas includes VAT at 5%.

Why is electricity so much dearer per kWh than gas under the price cap?

Ofgem sets separate caps for each fuel. For 1 October to 31 December 2026 the GB average Direct Debit unit rate is 26.32p per kWh for electricity and 7.97p per kWh for gas, so a unit of electricity costs a little over three times a unit of gas. Compare like with like: look at the per kWh rate and the daily standing charge for each fuel on your bill rather than one headline figure.

Is the energy price cap my maximum bill?

No. It caps rates on default tariffs, not the total amount. Higher usage means a higher bill. The £1,663 / £1,723 figures are illustrative annual totals for a typical dual-fuel Direct Debit household.

How often does the Ofgem energy price cap change?

Ofgem usually updates it every three months. Levels for 1 January – 31 March 2027 are due to be announced by 25 November 2026, then quarterly thereafter (see Ofgems published timetable).

Do fixed energy deals follow the price cap?

No. Fixed tariffs use the rates you agreed. When the fix ends you often move to an SVT under the cap unless you choose a new deal. Compare options before your fix expires via compare gas and electricity.

Why are October 2026 unit rates hard to compare with July?

Because VAT on domestic electricity is removed from 1 October 2026 to 31 March 2027. Ofgem states costs cannot be compared directly to previous periods without allowing for that VAT change. Most of the headline dual-fuel rise is driven by higher gas costs.

Does the price cap apply in Northern Ireland?

No. The Ofgem domestic price cap covers Great Britain (England, Scotland and Wales). Northern Ireland has a separate regulatory framework.

Where can businesses check energy prices?

The domestic price cap does not set business energy prices. Use business energy comparison for commercial quotes.