Budget 28 Oct 2026: gas standing charges due to go in 2027 — what it means for your bill.
Update 27 October 2026: supplier forecasts for the January cap are now £2,161–£2,192 against today's £1,723 (forecasts, not Ofgem figures). Latest forecasts.
Written by: EnergySwitch editorial team · Last reviewed: 26 October 2026
Direct answer: An energy switch offer is only worth having if it beats what you would pay under Ofgem’s price cap once you include the standing charge, the contract length and any exit fee. From 1 October to 31 December 2026 the cap is £1,723 a year for a typical dual-fuel household paying by Direct Debit (electricity 26.32p per kWh and 54.83p a day; gas 7.97p per kWh and 29.68p a day). Ofgem has not yet announced the cap for January to March 2027; it says it will do so by 25 November 2026. Any January figure you see before then is a forecast, not an official price.
This page explains how switch offers sit against the cap, what to check before you take one, and how switching works. We do not list “cheapest” deals or promise savings here: offers change daily and depend on your postcode, meter and usage.
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Disclosure: home energy comparisons are provided by our partner The Energy Shop. We may earn a commission if you switch through this link. It doesn’t change the price you pay.
Ofgem announced the current cap on 26 August 2026. For a typical household paying by Direct Debit for gas and electricity it is £1,723 a year, up 4% on July–September. Ofgem says the rise reflects higher wholesale gas prices.
| Fuel | Unit rate | Standing charge | VAT |
|---|---|---|---|
| Electricity | 26.32p per kWh | 54.83p per day | 0% (1 October 2026 to 31 March 2027) |
| Gas | 7.97p per kWh | 29.68p per day | 5% (included) |
These are averages across England, Scotland and Wales. Your own capped rates depend on your region, meter and how you pay: see price cap rates by region and the energy price cap hub. The cap limits unit rates and standing charges, not your total bill.
Ofgem’s published schedule says the cap for 1 January to 31 March 2027 will be announced by 25 November 2026, and that it may publish earlier if it needs to. Until then there are no official January rates. Industry forecasts are not Ofgem figures. We track the forecasts we can check at source, each with its date, in January 2027 price cap forecasts vs Ofgem, and explain why EDF’s scenario sits at the top of the range in EDF’s January forecast explained.
Most “offers” fall into a few types. Each has to be judged against the cap and your own usage.
| Type of offer | How it compares with the cap | What to check |
|---|---|---|
| Fixed-rate tariff | Prices set for the term, so a future cap rise or fall does not change them | Unit rates, standing charges, length, exit fee |
| Standard variable (default) tariff | This is the tariff the cap applies to; prices change each quarter | Your regional capped rates |
| Tracker or time-of-use tariff | Prices follow wholesale prices or vary by time of day, not the cap | When you use energy, smart meter needs, how often rates change |
| Sign-up reward or cashback | A one-off extra, not a lower price | Conditions for receiving it, and the tariff it comes with |
Ofgem says you are not affected by cap changes if you are on a fixed rate tariff. Its August 2026 announcement said around 35% of households (about 11 million) were on fixed tariffs.
A fix gives you certainty; it does not guarantee you pay less than the cap over the whole term. Compare the fixed unit rates and standing charges with your current capped rates, check the exit fee in case the cap falls, and remember the January cap is not yet known. We go through the trade-offs in should I fix my energy deal this winter?
Today’s best-priced tariffs for your postcode are on cheapest energy deals and through the comparison link on this page, or you can compare gas and electricity prices side by side.
Step by step: how to switch energy supplier. For how many households are switching each month, see our UK energy switching statistics.
The price cap does not cover business energy contracts, and business contracts have no cooling-off period. If you are comparing for a business site, use business energy comparison instead.
Disclosure: we may earn a commission if you switch through this link. It doesn’t change the price you pay.
From 1 October to 31 December 2026 it is £1,723 a year for a typical dual-fuel household paying by Direct Debit. Electricity averages 26.32p per kWh with a 54.83p daily standing charge, and gas 7.97p per kWh with a 29.68p daily standing charge.
No. As of 26 October 2026 Ofgem has not announced it. It says it will do so by 25 November 2026.
Some are and some are not. Compare the offer’s unit rates and standing charges with your regional capped rates, then add any exit fee and check the contract length.
Only if the tariff underneath is good value for you. A one-off reward does not change the unit rate or standing charge you pay for the rest of the contract.
Yes. Ofgem says you can cancel within 14 days.
Household offers do not. Business energy is bought on commercial contracts and is not covered by the price cap.
This page is general information, not financial advice. Forecasts mentioned or linked are not official Ofgem figures.
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