What the price cap is
The energy price cap is set by Ofgem, the energy regulator for Great Britain. It limits the unit rate (the price of each kWh) and the standing charge (a fixed daily charge) that suppliers can charge on standard variable and default tariffs.
It does not cap your total bill. The more energy you use, the more you pay. Ofgem updates the cap every three months, using the latest wholesale costs, network costs and other inputs.
The cap covers England, Scotland and Wales. Northern Ireland has a separate energy market and is not covered.
Rates from 1 October 2026
From 1 October to 31 December 2026, the average price cap rates for a home paying by Direct Debit are:
| Unit rate | Standing charge | |
|---|---|---|
| Electricity (no VAT) | 26.32p per kWh | 54.83p a day |
| Gas (5% VAT included) | 7.97p per kWh | 29.68p a day |
These are averages across Great Britain. The calculator uses them by default, and you can enter the rates from your own bill under More options.
The typical bill: £1,723
Ofgem’s headline figure is £1,723 a year for a typical home using gas and electricity and paying by Direct Debit, up from £1,663 from July to September 2026. That is a rise of about 4%, or about £5 a month.
The headline is not what anyone actually pays: it is the cap rates applied to a typical home’s use. Your own bill depends on how much you use.
How your bill is worked out
Each fuel is worked out the same way: units used times the unit rate, plus the standing charge for each day. For a typical home:
- Electricity used2,500 kWh × 26.32p£658.00
- Electricity standing charge54.83p × 365 days£200.13
- Gas used9,500 kWh × 7.97p£757.15
- Gas standing charge29.68p × 365 days£108.33
That matches Ofgem’s £1,723 (Ofgem rounds its rates for publication). Split over 12 months it is about £143.63 a month: £71.51 for electricity and £72.12 for gas.
Typical use: low, medium and high
Ofgem publishes “typical domestic consumption values” for homes with low, medium and high use. It lowered them from 1 July 2026, because homes now use less energy than when they were last set in 2023: medium use fell from 2,700 to 2,500 kWh of electricity and from 11,500 to 9,500 kWh of gas.
| Use | Electricity | Gas | Bill a year | A month |
|---|---|---|---|---|
| Low | 1,600 kWh | 6,000 kWh | £1,207.78 | £100.65 |
| Medium | 2,500 kWh | 9,500 kWh | £1,723.61 | £143.63 |
| High | 3,800 kWh | 14,000 kWh | £2,424.42 | £202.04 |
A low-use home is often a flat or small house with one or two people. A high-use home is larger, has more people, or is someone at home all day. Pick low, medium or high in the calculator, or type in the figures from your bill.
No VAT on electricity until April 2027
Household energy normally carries VAT at 5%. The government removed VAT from household electricity from 1 October 2026 to 31 March 2027. It applies to all electricity bills, including fixed tariffs, and suppliers apply it automatically. Gas keeps its 5% VAT.
For a typical home using 2,500 kWh, the electricity bill is £858.13 a year. With 5% VAT added, it would be about £901.04: a saving of about £42.91. Ofgem says that without the VAT cut, the October rise would have been about £45 higher.
What changed since July
From July to September 2026, the cap rates were 26.11p per kWh for electricity (with VAT) and 7.33p for gas, with standing charges of 57.19p and 29.04p a day.
- Electricity
- £861.49
- Gas
- £802.35
- A year
- £1,663.84
- Electricity
- £858.13
- Gas
- £865.48
- A year
- £1,723.61
For a typical home, gas rose by about £63.14 a year and electricity fell by about £3.36. Ofgem says wholesale costs drove the rise, with gas prices pushed up by conflict and instability in the Middle East and by hot weather across Europe. The removal of VAT kept electricity broadly level.
Homes with no gas
Homes with no gas supply saw almost no change. At 2,500 kWh a year, electricity costs £858.13, about £3.36 less than in the summer. Ofgem says homes without gas see a change of under 1%.
Homes heated by electricity use far more than 2,500 kWh, so choose “Electricity only” in the calculator and enter your own yearly use. At 3,800 kWh, the bill is £1,200.29 a year. To see where the units go, try our appliance running cost calculator.
Standing charges
The standing charge pays for the networks that bring energy to your home and some other fixed costs. You pay it every day, even if you use nothing.
Together that is £308.46 a year, about 17.9% of a typical bill, down from £314.74 in the summer. Low users feel standing charges most, because they make up a bigger share of a small bill.
How you pay changes the price
The cap is different for each payment method. Ofgem’s typical yearly bills for October to December 2026 are:
| Payment method | July to September | October to December |
|---|---|---|
| Direct Debit | £1,663 | £1,723 |
| Pay on receipt of bill (standard credit) | £1,796 | £1,861 |
| Prepayment meter | £1,620 | £1,678 |
Paying when the bill arrives costs more because suppliers wait longer for the money and face more unpaid bills. Prepayment is the cheapest: Ofgem says about £45 a year less than Direct Debit. The calculator estimates other payment methods by scaling with these typical bills.
Why your region matters
There are 14 electricity regions in Great Britain, and the cap is set for each one. Network costs differ, so unit rates and standing charges vary from region to region.
The calculator uses the Great Britain average, so your real bill may be a little higher or lower. For an exact figure, enter the rates from your bill or from Ofgem’s regional table under More options.
Economy 7 meters
Economy 7 meters record a cheaper night rate and a dearer day rate. Ofgem caps the average of the two, assuming 42% of use is at night, and uses a typical 3,400 kWh a year. On that basis the typical Economy 7 electricity bill paying by Direct Debit is £1,046 a year from October 2026, up about 1% from £1,039.
Your supplier can split the cap between day and night rates as it chooses. If you have Economy 7, enter your average unit rate in the calculator, or work out your day and night use separately.
Fixed tariffs and your own rates
The cap only limits standard variable and default tariffs. A fixed tariff has its own rates for a set time, which can be above or below the cap. If you fixed, your bill will not change when the cap does until your deal ends.
To use your own rates, enter them under More options. For example, at 24p for electricity and 6.5p for gas, with the cap standing charges, a typical home would pay £1,525.96 a year. Check any exit fees before switching.
How Direct Debits are set
Your supplier sets your Direct Debit to spread a year’s cost evenly over 12 months. It bases it on your expected use and the current rates, and may adjust it to clear a debt or reduce a credit on your account.
If you only know what you paid each month, choose “Monthly payment” in the calculator and enter what you paid from July to September. It works back to your likely use, then prices that use at the new cap. For example, £140 a month before October suggests about 2,530 kWh of electricity and 9,614 kWh of gas a year, which costs about £145.05 a month at the October cap.
Winter and summer
Most homes use far more gas in winter, when the heating is on. A fixed monthly Direct Debit builds up a credit in summer that is used up in winter. It is normal for your account to be in credit in autumn and to fall over the winter.
The price cap changes every three months, so a yearly figure at one quarter’s rates is a guide, not a forecast. The October to December rates apply to the heaviest months of the year only in part.
Reading your bill
- Estimated annual consumption: your supplier’s estimate of your yearly use in kWh, for each fuel. Use it in the calculator.
- Unit rate and standing charge: your own prices, which may differ from the average.
- Tariff name and end date: whether you are on a capped variable tariff or a fixed deal.
- Meter readings: “E” means estimated. Send real readings, or use a smart meter, so your bill is accurate.
Gas meters measure volume; your bill converts it into kWh. Use the kWh figure.
What each unit saved is worth
At the October to December 2026 cap, every 1,000 kWh of electricity you avoid saves about £263.20, and every 1,000 kWh of gas about £79.70. Units of electricity are worth over three times as much to save as units of gas.
Turning the heating down, draught-proofing and using less hot water cut gas use. Drying clothes without a tumble dryer, using smaller cooking appliances and cutting standby power cut electricity use.
The next price cap
- 1 October 2026Cap rises to £1,723 for a typical home
VAT on electricity removed.
- 25 November 2026Ofgem announces the January to March 2027 cap
- 1 January 2027New cap rates start
- 31 March 2027Zero VAT on electricity is due to end
Unless the government extends it.
When the January cap is announced, the calculator’s figures will be updated. Until then, it shows the rates in force now.
Help if you are struggling
If you cannot pay, contact your supplier as soon as you can. Suppliers must work with you to agree an affordable way to pay, such as a payment plan, and consider your circumstances.
Check you are getting all the help you are entitled to with our benefits checker. If you are on a low income, see what Universal Credit you could get, and whether a Council Tax Reduction could lower another big household bill. People over State Pension age should check Pension Credit, which can unlock other help.
Moving home?
Take a meter reading on the day you move in and out, and give it to the supplier. Add energy to your moving house budget.
What makes up the cap
Ofgem builds the cap from several cost allowances. For a typical Direct Debit home from October to December 2026, wholesale energy is the biggest part, and its share grew from 44% to 47% since the summer.
Wholesale costs move with gas and power markets, which is why the cap changes every quarter. Network costs pay for the wires and pipes, and are the main reason prices differ between regions. Figures may not add to 100% because of rounding and smaller items, such as VAT on gas.
The cost of one quarter
The October to December 2026 rates last for 92 days. Over that time, a typical home using energy at an even rate through the year would pay about £434.44. In practice, most homes use more gas in these months than in the summer, so the real cost of the quarter is usually higher, and lower in spring and summer.
This is why the calculator shows a yearly figure and a monthly average: it is the clearest way to compare one cap with another, and it matches how Direct Debits are usually set. To see what a single appliance adds, use our appliance running cost calculator.