Changes to energy price cap between 1 October and 31 December 2026

From 1 October to 31 December 2026 energy prices will go up by 4% for a typical household who use electricity and gas and pay by Direct Debit.

Energy price cap rates 1 October to 31 December 2026

You are not affected by the changes to the energy price cap if you have changed to a fixed rate tariff.

Electricity rates

If you are on a standard variable tariff (default tariff) and pay for your electricity by Direct Debit, you will pay on average 26.32 pence per kilowatt hour (kWh). The daily standing charge is 54.83 pence per day. This is based on the average across England, Scotland and Wales. It does not include VAT from 1 October 2026 to 31 March 2027.

Gas rates 

If you are on a standard variable tariff (default tariff) and pay for your gas by Direct Debit, you will pay on average 7.97 pence per kilowatt hour (kWh). The daily standing charge is 29.68 pence per day. This is based on the average across England, Scotland and Wales and includes VAT at 5%.

Changes to VAT from 1 October 2026

The government has removed VAT from electricity bills from 1 October 2026 to 31 March 2027.

As a result, VAT is not included in electricity bills for people covered under the energy price cap between 1 October and 31 December 2026. You will still pay 5% VAT for gas.

This means that all households that are covered by the energy price cap (on a default tariff) will pay less for their electricity. This also applies to some small businesses.

Some people who use more electricity than gas, or only use electricity, will have a bigger reduction in their bill.

We have included this change in the figures we have published. You might not see the full impact of the VAT reduction on electricity in your bill, because gas wholesale prices are still high due to global events.

Costs cannot be compared directly to previous periods because of this change.

Unit rates and standing charges

You can get and compare by area 1 October to 31 December 2026 and 1 July to 30 September 2026 energy price cap unit rates and standing charges.

You can also find and compare all the energy price cap (default tariff) levels.

Read about who the price cap protects and how the energy price cap is calculated in energy price cap and standing charges explained.

Why energy prices are changing

This increase is a result of higher wholesale gas prices, caused by the ongoing conflict in the Middle East. However, prices are still very much below the height of the energy crisis in 2022. The government then put a limit on bills of £2,500.

Managing your energy bills and tariff

You are covered by the energy price cap if you are on a default tariff and pay for your electricity and gas by:

• standard credit (payment made when you get your electricity and gas bill)
• Direct Debit
• prepayment meter
• Economy 7 (E7) meter

The actual amount you pay will depend on how much energy your household uses, where you live and the type of meter you have. 

You could pay less for your energy by changing your energy tariff or payment type. Find out if you can change or fix your tariff and how to switch energy supplier. 

You could also save money if your supplier offers half price or lower cost electricity at weekends. Most people who have a smart meter or other low carbon technologies can take advantage of these offers.

Tell your energy supplier if you cannot pay your bills. They must help you if you ask. They could set up a repayment plan or provide you with emergency credit.

Energy price cap level dates

We review and update the price cap level on how much an energy supplier can charge for each unit of energy, including the standing charge, every 3 months. The levels for the next periods will be announced by:

25 November 2026 – period 1 January 2027 to 31 March 2027

23 February 2027 – period 1 April 2027 to 30 June 2027

26 May 2027 – period 1 July 2027 to 30 September 2027

We may publish before these dates if we need to because of external reasons.