Energy prices explained
Checked 19 September 2026October’s increase is confirmed. January could bring a bigger rise. Understand the numbers, see the longer-term picture and decide whether a fixed tariff could suit your home.
Great Britain: England, Scotland and Wales. Northern Ireland has separate energy regulation.
Now · July–September 2026
£1,663/year
Current typical-use cap
1 October 2026 · Confirmed
£1,723/year
↑ 3.6% · £60 above the current cap
1 January 2027 · Forecast
£2,152/year
↑ 24.9% · £429 above October
Annualised figures for typical dual-fuel use paid by Direct Debit; not the bill for a three-month period. Ofgem rates (opens in a new tab). January uses MSE’s supplier forecast average (opens in a new tab) for the week beginning 14 September 2026, not a guaranteed outcome.
The bigger picture
April 2021–October 2026, with a January 2027 forecast · £ per year
History is restated at 2,500 kWh electricity and 9,500 kWh gas annually, using MSE’s comparable series (opens in a new tab). These are underlying caps, not actual household payments: government support reduced bills during the 2022–23 peak. October is confirmed; January is a forecast.
| Period starts | Annualised cap | Status |
|---|---|---|
| Apr 2021 | £979 | Historical / current |
| Oct 2021 | £1,093 | Historical / current |
| Apr 2022 | £1,673 | Historical / current |
| Oct 2022 | £2,972 | Historical / current |
| Jan 2023 | £3,582 | Historical / current |
| Apr 2023 | £2,762 | Historical / current |
| Jul 2023 | £1,766 | Historical / current |
| Oct 2023 | £1,641 | Historical / current |
| Jan 2024 | £1,723 | Historical / current |
| Apr 2024 | £1,521 | Historical / current |
| Jul 2024 | £1,414 | Historical / current |
| Oct 2024 | £1,543 | Historical / current |
| Jan 2025 | £1,561 | Historical / current |
| Apr 2025 | £1,655 | Historical / current |
| Jul 2025 | £1,541 | Historical / current |
| Oct 2025 | £1,576 | Historical / current |
| Jan 2026 | £1,584 | Historical / current |
| Apr 2026 | £1,477 | Historical / current |
| Jul 2026 | £1,663 | Historical / current |
| Oct 2026 | £1,723 | Confirmed upcoming |
| Jan 2027 | £2,152 | Forecast |
Two dates to watch
The cap rises from £1,663 to £1,723. Ofgem rounds the change to 4%. Gas increases more sharply than electricity; your own change depends on your fuel mix, region and consumption.
The new rates apply until 31 December. Higher winter usage can increase your spending further, even without another rate change.
MSE’s average of British Gas, EDF and E.ON Next predictions is £2,152: 24.9% above October. Ofgem is due to announce January’s cap on 25 November 2026.
This is not a minimum increase. Forecasts differ: MoneyWeek’s 17 September report cites estimates ranging from £1,872 to £2,165. Wholesale prices and policy changes can alter the outcome.
The rates behind your bill
Great Britain averages for Direct Debit customers. Check your supplier’s regional rates for an exact comparison.
| Charge | July–September | October–December | Change |
|---|---|---|---|
| Electricity unit rateper kWh | 26.11p | 26.32p | +0.21p |
| Gas unit rateper kWh | 7.33p | 7.97p | +0.64p |
| Electricity standing chargeper day | 57.19p | 54.83p | −2.36p |
| Gas standing chargeper day | 29.04p | 29.68p | +0.64p |
Source: Ofgem (opens in a new tab). Published rates include applicable VAT. From October, gas includes 5% VAT; electricity VAT is suspended until 31 March 2027. Rates are rounded to two decimal places.
The cap controls rates on default tariffs. More energy use means a bigger bill; the headline annual figure is a benchmark, not a spending limit.
You pay them even when you use no energy. Compare both the daily charges and the price per kWh when assessing a tariff.
Our recommendation
If you are on a standard variable tariff, reviewing fixed offers now is sensible. A competitively priced fix can provide more certainty over your rates if the cap rises.
Fixing does not guarantee a saving. You could pay more if variable prices fall, and using more energy still increases your bill. Check how the contract handles tax or policy changes.
Read more about fixed tariffsUse annual gas and electricity kWh from your bills, rather than the national headline figure.
Compare both fuels, standing charges, tariff length and any conditional discounts.
Check fees per fuel, moving-home rules and whether you could afford to leave early.
Confirm payment method, meter requirements and the date the new rates begin.
Updates and guides to help you understand your bills.
Energy Bills
January 2027 energy forecasts point to a rise of around 25%. See the dated predictions, what is confirmed and what they could mean for your bills.
Energy Bills
Ofgem confirms a £1,723 typical annual energy bill from October 2026. See average gas and electricity rates, standing charges and who is affected.
Answer a few questions about your home and explore an illustrative benchmark in less than a minute.
