October 2026 Energy Price Cap: £1,723 and What Changes

Ofgem has confirmed the energy price cap for 1 October to 31 December 2026 at £1,723 a year for a typical dual-fuel household paying by Direct Debit. That is £60 above the previous £1,663 benchmark, an increase of approximately 3.6%, rounded to 4% in Ofgem’s announcement. This is confirmed information, unlike the January forecast.

Ofgem’s published average Direct Debit rates are 26.32p per kWh for electricity, with a 54.83p daily standing charge, and 7.97p per kWh for gas, with a 29.68p daily standing charge. These are averages for Great Britain rather than a guaranteed quote for your postcode. The rates page states that gas includes 5% VAT and electricity has no VAT for this period.

For comparison, the same table lists July–September at 26.11p per kWh and 57.19p a day for electricity, and 7.33p per kWh and 29.04p a day for gas. The gas increase is more pronounced, while the average electricity standing charge falls. Ofgem cautions about direct comparisons because the electricity VAT treatment changes.

No. The cap regulates prices on covered default tariffs, not the total amount a home can spend. Your actual cost depends on consumption, region, payment method and meter arrangement. The £1,723 headline is an annualised illustration; it is not the amount everyone pays or a bill covering only October to December.

A household using more energy can pay more than the headline figure. Equally, a low-use household may pay less. Comparing a winter statement with one-twelfth of the annual benchmark can be misleading because heating demand is seasonal.

Ofgem attributes the increase mainly to higher wholesale gas costs linked to the Middle East conflict. Its announcement also says the removal of VAT from domestic electricity helps keep electricity costs broadly stable. The combined headline therefore does not describe an identical percentage rise for both fuels.

The announcement concerns default tariffs covered by the cap. An existing conventional fixed tariff does not simply reset to the new capped prices. Check your contract end date, especially if it expires during the quarter, and read the supplier’s notice for the rates that will actually apply to your account.

Keep the notice next to a recent statement and compare the electricity rate, gas rate and both standing charges. Checking these four items is more informative than comparing two monthly payment amounts. If a quoted figure differs from a national average, first check the region and payment method before concluding it is wrong.

Write down your annual kWh use and tariff end date so you can assess a new offer on the same basis. If a monthly payment changes, ask the supplier to explain the usage and account-balance assumptions behind it. Keep a record of readings and correspondence if you need to query the calculation.

Use the October figures for the confirmed quarter and the separate January article for the outlook. Avoid treating October’s annualised headline as a promise about the following twelve months. For a decision about switching, compare a personalised quote over the proposed contract term.