The UK price cap for default energy tariffs entered a new period on 1 October 2026. Energy regulator Ofgem set the annualised cap figure for a typical dual-fuel household paying by Direct Debit in England, Scotland and Wales at £1,723 for 1 October to 31 December. This is not a guaranteed bill or a fixed payment from the government to every household. The cap is applied through unit rates and daily standing charges, while the amount paid depends on energy use, meter type, payment method and region. Ofgem said the new period represents a 4% increase on the previous quarter.

In the regulator’s country-average rates for Direct Debit customers, electricity is 26.32 pence per kilowatt-hour with a 54.83 pence daily standing charge. Gas is 7.97 pence per kWh with a 29.68 pence daily standing charge. Compared with July to September, the gas unit rate rose from 7.33 pence to 7.97 pence per kWh, while electricity moved from 26.11 pence to 26.32 pence; standing charges also increased for both fuels. Ofgem says costs cannot be compared directly across the periods because VAT is removed from electricity bills from 1 October 2026 through 31 March 2027. That tax change should be read alongside the fact that the published gas price includes 5% VAT.

The cap limits the unit rates and standing charges that suppliers can charge customers on default or standard variable tariffs. Customers who have moved to fixed-rate deals are not affected by this quarterly cap change. This distinction explains why the £1,723 annualised figure is not the same bill for everyone: Ofgem’s typical-use assumption is a comparison measure, not a prediction of each household’s consumption. Regional network costs and energy-use profiles also affect bills. The cost impact for an individual household therefore cannot be inferred without knowing its tariff and consumption.

Ofgem linked the increase mainly to higher wholesale gas prices and said prices remained below the peak of the earlier energy crisis. The cap does not forecast future wholesale prices; it states regulated maximum retail rates for a defined three-month period. Wholesale costs can change again in later price-setting periods. The announcement is a retail-price indicator and does not by itself describe gas supply, consumption or overall inflation. New rates may affect budgets for households on variable tariffs as winter begins, but the size of any effect depends on weather and each household’s use.