Energy price cap October 2026 explained: latest Ofgem rates and predictions
Energy price cap at a glance
The energy price cap is set at £1,723 per year for an average use household paying by Direct Debit until 31 December 2026 (4% higher than the previous cap).
| Electricity costs | 26.32p per kWh, 54.83p standing charge per day |
|---|---|
| Gas costs | 7.97p per kWh, 29.68p standing charge per day |
| Prepayment meter cap level | £1,678 |
| Next price cap change | 1 January 2027 (to be announced on or before 25 November 2026) |
| Predicted January 2027 cap | £2,084 per year (+21%) - average of British Gas, EDF and E.ON Next predictions as of 13 October 2026 |
| What you can do about it | Estimate your potential January bill or see currently available fixed deals here |
What is the energy price cap?
The energy price cap is a limit on the unit rates and standing charges that energy suppliers can charge for their standard variable tariffs.
The October 2026 price cap (in effect until 31 December) is set at £1,723 per year for an average use household, as UK energy bills continue to feel the effects of the Middle East war.
There is also a price cap that applies to customers on prepayment meters. It's currently set at £1,678.
Ofgem, the energy regulator, sets both caps and reviews them four times a year.
Am I on the price cap?
The price cap only applies to the unit rates of standard variable tariffs. If you haven't switched energy before (or haven't switched for at least a year), or you've rolled off a fixed energy tariff, you're probably on the price cap.
October 2026 price cap unit rates and standing charges
The October 2026 price cap is 4% higher than the July cap, so bills between 1 October and 31 December will be higher than they were between 1 July and 30 September.
It's important to remember that the cap applies to unit rates, but to report it more clearly and easily, the "cap level" is based on the annual usage of an average-use dual fuel customer paying by direct debit. This means that you could actually pay more than the cap amount if you live in a bigger house and/or use more energy.
| Electricity | Gas | |
|---|---|---|
| Unit rates | 26.32p per kWh | 7.97p per kWh |
| Standing charges | 54.83p per day | 29.68p per day |
Energy price cap January 2027: predictions
Energy price cap predictions are difficult because of energy market volatility, but analysts currently expect the next price cap to rise by around 20% in January 2027.
Compared with the peak of the energy crisis in 2022 and early 2023, prices have fallen considerably. However, they remain well above pre-crisis levels, due to the war in the Middle East causing wholesale energy prices to spike, with a knock-on effect for UK energy bills.
The table below shows current predictions from suppliers for where the price cap level could go in the future.
| Price cap level | Annual energy cost for an average usage medium-sized household paying by Direct Debit |
|---|---|
| 1 January to 31 March 2026 | £1,584 |
| 1 April to 30 June 2026 | £1,477 |
| 1 July to 30 September 2026 | £1,663 |
| 1 October to 31 December 2026 | £1,723 |
| 1 January to 31 March 2027 (British Gas/EDF/E.ON Next average prediction) | £2,154* (+25% increase from previous cap) |
| 1 April to 30 June 2027 (British Gas/EDF/E.ON Next average prediction) | £2,202* |
*Based on supplier predictions as of 19 October 2026
Estimate your January 2027 bills
You can see the impact that the January price cap could have on your energy bills by using our calculator below. It’s based on the latest predictions, which could change, but it should still give you an idea of the way your costs will be affected by this probable cap rise.
What to do about rising energy prices
If you’re on the price cap, the quickest and most effective action you can take to avoid rising energy prices is to switch to a fixed rate tariff. It’s free to do so, and will usually help you save against the price cap (though deals often change, so this isn’t always a given). They also lock in your unit rate for a set period, typically 12 or 24 months, giving you certainty regardless of future cap changes.
You can see the fixed deals currently available on Uswitch in the table below.
| Supplier | Plan | Estimated cost | Switch |
|---|---|---|---|
 |
October 2026 Fixed (18m) V11 | Estimated annual cost £1829.81 | Switch today |
|
October 2026 Fixed (24m) V7 | Estimated annual cost £1840.18 | Switch today |
 |
Next Fixed 12m v163 | Estimated annual cost £1842.98 | Switch today |
 |
Sainsburys Energy Fix and Save 12m v33 | Estimated annual cost £1843.58 | Switch today |
|
Next Fixed 24m v79 | Estimated annual cost £1853.26 | Switch today |
|
October 2026 Fixed (16m) V1 | Estimated annual cost £1854.31 | Switch today |
 |
UW Fixed Essentials 100 | Estimated annual cost £1880.00 | Switch today |
 |
Simply Fixed 2Yr Oct28v7 | Estimated annual cost £1889.07 | Switch today |
|
October 2026 Fixed (12m) V11 | Estimated annual cost £1935.77 | Switch today |
|
UW Fixed Start 100 | Estimated annual cost £1939.98 | Switch today |
You may also be interested in switching to a tracker tariff. These tariffs follow wholesale prices directly. They can be cheaper than the cap when wholesale prices fall, but carry more risk if prices rise. Some tracker tariffs come with a built-in discount against the price cap, which can be a better option if you want to guarantee you'll always pay less than the cap.
There may also be government support available for more vulnerable households, so it’s worth checking if you’re eligible for schemes like the Warm Home Discount or Winter Fuel Payment.
“With continued instability in the Middle East, higher energy costs are now looking very likely throughout winter as a third consecutive price cap hike is predicted for January.
“A decent fixed tariff beats these rates and protects you from further price rises. Every week spent on a standard tariff is another week paying higher rates than you need to.”
How the energy price cap is calculated
Ofgem calculates the Ofgem price cap by looking at:
- Wholesale energy costs: The price suppliers pay to buy gas and electricity on the open market, which is often affected by global conflicts. Because wholesale costs make up roughly 40-50% of the total, movements in global gas markets have an outsized effect on where the cap lands each quarter.
- Network costs: The charges for transporting energy through the national grid and local distribution networks to your property.
- Policy costs: Levies that fund government energy schemes, such as support for renewable energy development and the Warm Home Discount.
- Supplier operating costs and profit margins: A regulated allowance for suppliers to cover their running costs and earn a reasonable return.
Ofgem calculates the wholesale element using an assessment period - a defined window during which it tracks market prices - and then adds the other components to arrive at the final cap figure.
When are the energy price cap assessment periods?
Ofgem looks at wholesale prices over set periods before each price cap reset.
The assessment period for the upcoming price caps are as follows:
| Price cap period | Announcement date | Price cap assessment period |
|---|---|---|
| 1 October 2026 - 31 December 2026 | 26 August 2026 | 19 May 2026 - 18 August 2026 |
| 1 January 2027 - 31 March 2027 | On or before 25 November 2026 | 19 August 2026 - 17 November 2026 |
| 1 April 2027 - 30 June 2027 | On or before 23 February 2027 | 18 November 2026 - 15 February 2027 |
October 2026 prepayment meter price cap rates
The price cap affects the four million prepayment customers in the UK in the same way that it affects those on standard variable tariffs. There is a separate cap for prepayment tariffs, which is reviewed independently of the SVT cap by Ofgem.
The prepayment price cap rose to £1,678 for the period from 1 October to 31 December.
Its current unit rates and standing charges are as follows.
| Electricity | Gas | |
|---|---|---|
| Unit rates | 25.52p per kWh | 7.70p per kWh |
| Standing charge | 54.83p per day | 29.68p per day |
Why is the energy price cap controversial?
There are a few reasons why the energy price cap has come under fire from energy experts and customers.
- Significant knock-on costs to customers. Since the increase of energy prices in September 2021, the cap has been criticised by suppliers for not allowing them to charge more for standard variable tariffs. This means costs are passed on to customers in one hit when the cap level rises. This is why the cap is now reviewed four times a year, with Ofgem hoping that any wholesale cost savings can be more quickly passed on to customers.
- Better savings can be found by switching. Unless wholesale prices are particularly high, fixed deals are almost always cheaper (sometimes by hundreds of pounds) than standard variable tariffs on the price cap.
- False sense of security. The cap can still go up (or down) as energy prices will always be subject to wholesale costs, distribution costs and other factors. The concern is that consumers will assume the price cap means they are protected from fluctuating costs by the government’s cap.
How has the price cap level changed over time?
FAQs
What will happen to the energy price cap in 2026?
The energy price cap increased to £1,723 from 1 October to 31 December, so it won't change again in 2026. It's likely to increase significantly when it next changes on 1 January 2027.
Is there a business energy price cap?
There’s no price cap on business energy. If you have a non-domestic energy contract, the price cap will not protect your bills. The only way to guarantee bill stability is to fix your rates. If your contract is up for renewal or if it’s already ended, head to our business energy page to compare quotes from a panel of suppliers and switch.
Are any suppliers exempt from the price cap?
Ofgem reserves the right to grant temporary or permanent exemptions from the price cap for tariffs and suppliers which make significant efforts to generate and supply green energy to customers. This means that they are allowed to charge rates that exceed the price cap unit rate on SVTs - in other words, the price cap does not apply to them.
Ecotricity, Good Energy and 100Green are the three suppliers who have been granted permanent exemption from the price cap.
Is there any government help with energy bills?
There are no widespread government support measures currently available. However, as we go into autumn, some targeted government support for the most vulnerable households may be available because energy usage will start rising again. In the meantime, there is financial help from the Household Support Fund (via local councils) and from various charities and organisations, both nationally and locally.
You can also check to see if you can get the Warm Home Discount, Winter Fuel Payment and/or Cold Weather Payment, which are paid every year to eligible households.
Can I be charged more than the price cap?
Yes, there are situations where you can be charged more than the cap, including:
- If you're on a fixed deal priced higher than the cap
- If you're with a supplier exempt from the cap
- If you're on a tracker tariff whose prices have risen above the cap