5 October 2026
Energy Price Cap Update: October 2026
The new rates
Direct Debit, GB average: • Electricity: 26.32p per kWh, standing charge 54.83p per day • Gas: 7.97p per kWh, standing charge 29.68p per day • Typical household bill: £1,723 a year No VAT on electricity from 1 October 2026 to 31 March 2027; gas includes 5% VAT.
What it means for everyday costs
A 2kW electric heater now costs about £0.53 an hour, a 2.5kW tumble dryer cycle about £0.66, and an electric blanket about £0.03 for an hour. The cap limits unit rates and standing charges, not your total bill — using more energy still costs more.
What happens next
The cap changes every three months. The next period starts on 1 January 2027, and Ofgem normally announces the new figures about five weeks before. We will publish the update here as soon as it is confirmed.
Should you fix?
Compare any fixed tariff with the cap's unit rates and standing charges, not just the headline annual figure. A fix only saves money if the cap rises above it during the contract, and exit fees can apply.