What the new cap means
Ofgem has set the energy price cap at £1,723 a year for a typical household from 1 October to 31 December 2026. That is a 4% rise on the current level. Electricity unit rates edge up 0.8% to 26.32p per kWh while the standing charge falls 4.1% to 54.83p a day after the temporary removal of 5% VAT. Gas sees bigger moves, with the unit rate climbing 8.7% to 7.97p per kWh.
Who feels the change
Anyone on a standard variable or tracker tariff will see the new rates from 1 October. Fixed-tariff customers stay protected until their deal ends. The cap limits unit rates and daily standing charges only; your actual bill still depends on how much energy you use, and winter demand usually pushes usage higher.
Fixed deals and next steps
We covered how to weigh fixed tariffs against the new cap in our recent guide. EDF's Head of Portfolio Pricing, David Edmonds, said: "A 4% rise in the price cap is unwelcome for consumers, particularly ahead of winter when energy use increases. While global gas market disruption has driven the increase, the impact has been limited by the price cap methodology and suppliers hedging energy purchases in advance. However, wholesale markets currently point to a larger increase in Q1-27, making fixed tariffs worth considering as protection against further price rises."
Check your current tariff in your supplier account or latest bill, then compare fixed options on our energy pages before the next review.
