The £1,723 energy price-cap headline is useful, but it does not tell every household what it will actually pay.
A better way to understand the October 2026 change is to look at how much energy a household uses.
Ofgem updated its Typical Domestic Consumption Values in July 2026. These provide low, medium and high annual energy-use benchmarks.
Using those benchmarks together with Ofgem's average Direct Debit unit rates and standing charges for 1 October to 31 December 2026, we can build three simple annualised examples.
These are illustrations, not quotes or guaranteed bills.
The Ofgem price cap applies to covered default tariffs in England, Scotland and Wales. Northern Ireland is not covered by this price cap.
The October rates used in these examples
The calculations use Ofgem's Great Britain average Direct Debit rates:
- electricity: 26.32p per kWh
- electricity standing charge: 54.83p per day
- gas: 7.97p per kWh
- gas standing charge: 29.68p per day
The combined average standing charge is 84.51p a day, or approximately £308.46 across 365 days.
Actual regional rates vary, so your bill may be different even if your annual usage is similar.
Low-usage example
Ofgem's 2026 low-consumption benchmark for a standard single-rate household is:
- electricity: 1,600 kWh per year
- gas: 6,000 kWh per year
Using the October average rates:
- electricity usage: about £421.12
- gas usage: about £478.20
- combined annualised standing charges: about £308.46
Estimated annualised total: about £1,207.78
That is equivalent to roughly £100.65 per month when simply divided by 12.
Real monthly energy use is seasonal, particularly for gas, and a supplier's Direct Debit arrangement may smooth payments across the year. The monthly number should therefore be treated only as a simple annual average.
Typical-usage example
Ofgem's medium benchmark is:
- electricity: 2,500 kWh per year
- gas: 9,500 kWh per year
Using the same October rates:
- electricity usage: about £658.00
- gas usage: about £757.15
- combined annualised standing charges: about £308.46
Estimated annualised total: about £1,723.61
That works out at roughly £143.63 per month when divided evenly by 12.
This is why Ofgem's headline cap is stated as approximately £1,723 for a typical dual-fuel Direct Debit household.
The number is based on benchmark usage. It is not a universal bill limit.
High-usage example
Ofgem's high-consumption benchmark is:
- electricity: 3,800 kWh per year
- gas: 14,000 kWh per year
At the October average rates:
- electricity usage: about £1,000.16
- gas usage: about £1,115.80
- combined annualised standing charges: about £308.46
Estimated annualised total: about £2,424.42
That is approximately £202.04 per month when divided by 12.
Again, it is an annualised illustration. Actual monthly use, tariff rates and Direct Debit payments can be different.
Which example is closest to your household?
The most accurate starting point is not the size of your home or the number of people living there. It is your actual annual kWh usage.
Check a recent bill or your supplier's app for:
- annual electricity consumption
- annual gas consumption
- current electricity unit rate
- current gas unit rate
- both standing charges
If your annual usage sits between Ofgem's benchmark bands, your likely cost may also fall between the examples — but regional rates and tariff details still matter.
Why two households can pay very different amounts
Energy bills are affected by more than household size.
Usage can change with:
- insulation and energy efficiency
- heating system
- property type
- how often people are at home
- thermostat settings
- appliance use
- hot-water demand
- electric vehicle charging
- whether the property uses gas at all
That is why "the average bill" is best used as a comparison point rather than a prediction. To explore actionable changes that cut waste, see our guide to practical ways to reduce household energy use.
What about standing charges?
Even a very low-usage household still pays standing charges on a tariff that includes them.
At the October Great Britain averages, electricity and gas standing charges together amount to about £308 a year when annualised.
The exact amount varies by region. Read our guide on standing charges by region across Great Britain to see how daily charges differ by location.
Could a fixed tariff change the calculation?
Yes.
The calculations above use average capped rates for covered default tariffs.
If you are on a fixed tariff, your contracted unit rates and standing charges may be different and the October price-cap change does not automatically replace your fixed rates.
Anyone comparing a fixed tariff with a variable tariff should use their own annual kWh consumption and compare:
- electricity unit rate
- gas unit rate
- standing charges
- contract length
- exit fees
- any other tariff conditions
Our neutral checklist on fixed energy tariffs versus the price cap explains what to check before deciding to switch.
What changed in the typical-use assumptions?
Ofgem reduced its standard consumption benchmarks from 1 July 2026 after reviewing more recent household energy-use evidence.
For standard single-rate electricity, the medium benchmark moved from 2,700 kWh to 2,500 kWh per year.
For gas, the medium benchmark moved from 11,500 kWh to 9,500 kWh per year.
This is important when comparing older news reports with newer price-cap figures. A headline annual bill may change partly because the assumed "typical" usage has changed, not only because rates moved.
How to estimate your own cost
A simplified calculation is:
electricity usage × electricity unit rate
plus
gas usage × gas unit rate
plus
365 days of electricity and gas standing charges
Use the rates from your own tariff for the best estimate.
If you only want to understand the October cap, our unit rate guide explains each part of the calculation in detail.
The bottom line
At Ofgem's October average Direct Debit rates, the revised consumption benchmarks produce a wide range of illustrative annual costs:
- low usage: about £1,208
- typical usage: about £1,724
- high usage: about £2,424
That range is the key reason the £1,723 headline should never be read as a fixed bill for every home.
Your actual annual kWh usage is the number that matters most.
Sources
See Ofgem energy price cap unit rates and standing charges and Ofgem October to December 2026 price cap announcement. Figures checked on 13 September 2026.