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Written by: EnergySwitch editorial team · Last reviewed: 19 October 2026
Direct answer: Ofgem has not yet announced the energy price cap for 1 January – 31 March 2027. It says it will do so by 25 November 2026. The current, official cap for 1 October – 31 December 2026 is £1,723 a year for a typical dual-fuel household paying by Direct Debit. Every January figure you see quoted today is a forecast. As of 19 October 2026, the forecasts we could check on the forecaster’s own website range from £1,999 (Cornwall Insight, 30 September) to £2,185 (British Gas, updated 15 October). None of these is an Ofgem decision.
This guide sets each forecast out with its date and source, explains what Ofgem has actually set for October–December, and gives a practical checklist while you wait. For the full current rate tables, see our energy price cap hub. To see how a fixed deal compares with the capped rates for your own usage, try our fix vs price cap calculator.
What’s changed since our last update (14 October 2026)
Update, 19 October 2026. We rechecked every forecast on the forecaster’s own page. All figures below are still forecasts, and Ofgem has still not announced the January cap.
- British Gas raised its forecast from £2,080 to £2,185 (up £105; page updated 15 October 2026). It now rates its confidence “Low”, up from “Very Low”. This is now the highest forecast we can verify.
- EDF added: £2,148 (tables last updated 16 October 2026). EDF says this is £65 higher than its figure the week before.
- OVO added: £2,074 (table last updated 7 October 2026).
- No change: Cornwall Insight £1,999 (30 September; it has published no newer January forecast), E.ON Next £2,130 (as of 12 October) and the uSwitch average £2,098 (supplier predictions as of 13 October).
January 2027 price cap forecasts, dated and sourced
All figures are for a typical dual-fuel household paying by Direct Debit, using Ofgem’s typical consumption values of 2,500 kWh of electricity and 9,500 kWh of gas a year. Each row is a forecast. Forecasters update their numbers as wholesale prices move, so the date matters as much as the figure.
| Source | Status | Date of figure | January–March 2027 | Change vs £1,723 |
|---|---|---|---|---|
| Cornwall Insight | Forecast | 30 September 2026 (based on prices at close on 28 September) | £1,999 | +£276 (+16%) |
| OVO | Forecast (OVO rates its confidence “Very Low”) | Table last updated 7 October 2026 | £2,074 | +£351 (about +20%) |
| uSwitch (average of British Gas, EDF and E.ON Next predictions) | Forecast | Supplier predictions as of 13 October 2026 | £2,098 | About +22% (uSwitch figure) |
| E.ON Next | Forecast (E.ON Next rates its confidence “Lowest”) | As of 12 October 2026 | £2,130 | +£407 (about +24%) |
| EDF | Forecast (EDF rates its confidence “Low”) | Tables last updated 16 October 2026 | £2,148 | +£425 (about +25%) |
| British Gas | Forecast (British Gas rates its confidence “Low”) | Page updated 15 October 2026 | £2,185 | +£462 (about +27%) |
| Ofgem (official) | Not yet announced | Due by 25 November 2026 | To be confirmed | – |
The pound changes are the forecasters’ own for Cornwall Insight, OVO and E.ON Next, and our own arithmetic for EDF and British Gas. The percentages are our own arithmetic against the £1,723 October cap, except Cornwall Insight’s 16% and uSwitch’s 22%, which are their own figures. The uSwitch average is dated 13 October, so it was worked out before British Gas (15 October) and EDF (16 October) published their latest figures.
Why some figures you may have seen elsewhere are not here. Earlier October figures have been replaced by the forecasters themselves: British Gas £2,080 (1 October), EDF about £2,083 (early October), E.ON Next £2,088 (5 October) and the uSwitch average £2,084 (8 October). We use only the latest figure on each forecaster’s own page. We have also left out averages worked out by other websites, and figures credited to analysts or commentators that we could not find published on their own website.
Cornwall Insight’s forecast breaks down into about £959 for electricity and £1,040 for gas. Its predictions page (last updated 14 October 2026) says the January figure is still calculated from prices at the close of 28 September, which is one reason it sits below the newer supplier forecasts. It says the rise is largely driven by the conflict in the Middle East disrupting gas supplies, and that price rises already seen in Ofgem’s observation window make a January increase “all but certain”. That is Cornwall Insight’s analysis, not an Ofgem statement.
What Ofgem has actually set: October–December 2026
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 £60 (about £5 a month) or 4% from £1,663. Ofgem says around 35% of households, about 11 million, are on fixed tariffs and are not affected by the rise.
| Fuel (GB average, Direct Debit) | Unit rate | Standing charge | VAT |
|---|---|---|---|
| Electricity | 26.32p/kWh | 54.83p/day | No VAT (1 Oct 2026 – 31 Mar 2027) |
| Gas | 7.97p/kWh | 29.68p/day | Includes 5% VAT |
The cap limits unit rates and standing charges on default (standard variable) tariffs. It is not a cap on your total bill: use more energy and you pay more. Regional and payment-method rates are on our energy price cap hub.
When will Ofgem set the January 2027 cap?
| Cap period | Ofgem announcement due by |
|---|---|
| 1 January – 31 March 2027 | 25 November 2026 |
| 1 April – 30 June 2027 | 23 February 2027 |
| 1 July – 30 September 2027 | 26 May 2027 |
Ofgem says it may publish earlier if it needs to for external reasons. Until it does, there are no official January–March 2027 unit rates or standing charges.
Why forecasts differ, and why they move
Ofgem sets the wholesale part of the cap from prices observed over a fixed observation window before each cap period. Forecasters model the rest of that window and their own view of other costs, and they publish on different days. With gas prices moving quickly, two forecasts a week apart can differ by tens of pounds. Treat the range as a guide to direction, not as your January bill.
VAT on electricity into early 2027
Separately from the cap, the government has removed VAT from domestic electricity from 1 October 2026 to 31 March 2027. Gas keeps 5% VAT. That overlaps the January–March cap period, but it does not tell you what Ofgem’s capped rates will be. Full details: VAT off electricity from October 2026.
What to do while you wait
- Check your tariff. Are you on a standard variable tariff, or a fixed deal? If fixed, note the end date and any exit fee.
- Find your real usage. Your annual kWh is on your statement. The £1,723 and forecast figures are typical-use illustrations, not your bill.
- Compare a fix against the cap for your usage with our fix vs price cap calculator. A fix only makes sense if it works out for you after exit fees, not because of a forecast alone.
- Remember standing charges apply every day, however little you use. See standing charges October 2026.
- Re-check after 25 November, when Ofgem publishes the real January–March figures.
- If you are struggling to pay, contact your supplier early. Ofgem says suppliers should help you agree an affordable repayment plan.
FAQ
Has Ofgem announced the January 2027 energy price cap?
No. As of 19 October 2026, Ofgem has not published the January–March 2027 cap. It says it will announce it by 25 November 2026. The current official cap is £1,723 a year for a typical Direct Debit dual-fuel household.
What are the latest January 2027 forecasts?
As checked on the original sources on 19 October 2026: Cornwall Insight £1,999 (30 September), OVO £2,074 (7 October), the uSwitch average of British Gas, EDF and E.ON Next £2,098 (as of 13 October), E.ON Next £2,130 (as of 12 October), EDF £2,148 (16 October) and British Gas £2,185 (15 October). All are forecasts and can change.
Why do the forecasts keep changing?
Ofgem’s wholesale observation window for the January cap is still running, and wholesale gas prices have been volatile. Forecasters update their figures, often weekly, as new prices come in.
Is the price cap a limit on my total bill?
No. It limits the unit rates and daily standing charges on standard variable tariffs. The headline figure is based on typical use; if you use more energy, you pay more.
Does the electricity VAT cut continue into January 2027?
Yes. VAT on domestic electricity is 0% from 1 October 2026 to 31 March 2027. Gas stays at 5% VAT.
Should I fix before Ofgem’s announcement?
It depends on your usage, your current tariff and exit fees. Use the fix vs price cap calculator to compare a fix with the capped rates for your home, and don’t decide on a forecast alone. Fixed prices can also move before 25 November.
Sources
- Ofgem, Changes to energy price cap between 1 October and 31 December 2026 (26 August 2026), including announcement dates
- Ofgem, Energy price cap will rise by 4% from October 2026 (26 August 2026)
- Cornwall Insight, 16% Price Cap Rise Forecast in January (30 September 2026), forecast
- Cornwall Insight, Default Tariff Cap (Price Cap) Predictions & Insights (page last updated 14 October 2026), forecast
- British Gas, Energy price cap predictions (updated 15 October 2026, checked 19 October 2026), forecast
- EDF, Energy price cap predictions (tables last updated 16 October 2026), forecast
- OVO, Energy price cap predictions (table last updated 7 October 2026), forecast
- E.ON Next, Energy price cap predictions (prediction as of 12 October 2026), forecast
- uSwitch, Energy price cap guide (supplier predictions as of 13 October 2026), forecast
Figures checked against the sources above on 19 October 2026. This guide covers Great Britain. EnergySwitch is an independent comparison and guidance site; forecasts are reported, not endorsed.
