The energy price cap is changing again from 1 October 2026, and the headline figure for a typical dual-fuel household paying by Direct Debit will rise to £1,723 a year.
That is £60 higher than the £1,663 figure used for the July to September 2026 cap period. Ofgem describes the change as a 4% increase for a typical household.
The most important point is that £1,723 is not a limit on the total amount any household can be billed. The price cap limits the unit rates and standing charges suppliers can apply to customers on covered default tariffs. The amount a household actually pays still depends mainly on how much gas and electricity it uses.
The October cap applies from 1 October to 31 December 2026.
It covers households in England, Scotland and Wales that are on eligible default tariffs. Northern Ireland has a different energy market and is not covered by Ofgem's Great Britain price cap.
What changes from 1 October?
For a household paying by Direct Debit on a standard variable tariff, Ofgem's average rates for the October to December period are:
- Electricity: 26.32 pence per kWh
- Electricity standing charge: 54.83 pence per day
- Gas: 7.97 pence per kWh
- Gas standing charge: 29.68 pence per day
These are averages across Great Britain. Your own rates can be different because unit rates and standing charges vary by region, payment method and meter type.
The movement is also different for the two fuels. Compared with the July to September 2026 averages, the electricity unit rate rises only slightly, while the gas unit rate rises more noticeably. The average electricity standing charge falls, while the average gas standing charge rises slightly.
Why does Ofgem quote £1,723?
Ofgem uses a standard set of consumption assumptions so households can compare changes in the cap.
From July 2026, the medium Typical Domestic Consumption Values are 2,500 kWh of electricity and 9,500 kWh of gas per year.
When Ofgem's average October unit rates and standing charges are applied to that benchmark usage, the result is approximately the £1,723 headline annual figure.
That figure is useful for comparison, but it should not be treated as a personalised bill estimate.
A smaller, energy-efficient home may use much less. A larger household, an older property or a home with higher heating needs may use much more.
The price cap controls rates, not consumption
This distinction matters because two households on the same type of tariff can receive very different bills.
A household using 14,000 kWh of gas in a year will pay more for gas than a household using 6,000 kWh, even if both are on tariffs at the capped rates.
Standing charges are also payable each day regardless of how much energy is used.
For a more practical view, our separate guide to energy bill low, typical and high usage examples shows what different levels of energy use could cost at the October average rates.
Who is protected by the price cap?
The price cap mainly protects customers on standard variable or default tariffs.
According to Ofgem, covered payment methods can include:
- Direct Debit
- standard credit
- prepayment meters
- Economy 7 arrangements
A household that has agreed a fixed-rate tariff is generally paying the rates set by that fixed contract rather than the changing default-tariff cap during the fixed period.
Business energy contracts, heat networks and heating oil are not covered in the same way.
A change to electricity VAT
There is another change from October.
Ofgem's October figures reflect the removal of VAT from electricity bills from 1 October 2026 to 31 March 2027. Gas still includes VAT at 5% in the published Ofgem figures.
This is one reason simple comparisons between the October rates and older periods need care.
Households that use a relatively high share of electricity may experience the impact differently from households that rely heavily on gas.
Why are energy prices rising?
Ofgem says the October increase reflects higher wholesale gas costs.
The regulator reviews the price cap every three months so that the capped rates can reflect changes in the underlying costs of supplying energy, including wholesale costs, network costs, operating costs and other regulated components.
The cap can therefore move up or down from one quarter to the next.
What should households check now?
Before October, it is useful to look at your latest bill or online energy account and note:
- your current tariff name
- whether you are on a fixed or variable tariff
- your electricity unit rate
- your gas unit rate
- your electricity and gas standing charges
- your annual electricity consumption
- your annual gas consumption
- your payment method
Using your own annual kWh consumption will give you a much more useful estimate than simply assuming your bill will be £1,723.
If you do not know your annual usage, read our detailed guide on electricity and gas unit rates from October to December 2026 to see how the numbers work together.
When will the price cap change again?
The October cap applies until 31 December 2026.
Ofgem says the cap covering 1 January to 31 March 2027 is scheduled to be announced by 25 November 2026.
That means households should treat the October rates as applying to this specific quarter, not as a guaranteed price for the whole of 2027.
The bottom line
The £1,723 headline tells households that the benchmark annualised cost under the October cap is higher than in the previous quarter.
It does not mean every home will receive a £1,723 bill.
Your actual cost will depend on your consumption, tariff, location, meter and payment method.
For a clearer estimate, compare the unit rates with the annual kWh figures on your own energy bill.
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.