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British Energy ComplianceUTILITIES · ADVISORY · ASSURANCE
Ofgem · 1 October to 31 December 2026

Energy price cap: October to December 2026 rates by region

Typical dual-fuel bill £1723 a year on Direct Debit (was £1663). Electricity 26.32p/kWh and 54.83p a day; gas 7.97p/kWh and 29.68p a day. Every region and payment method below, from Ofgem's published tables.

Your capped bill

Pick your region and how you pay, enter your annual use, and see the most a supplier can charge you this quarter — and what the same use cost last quarter.

Ofgem’s typical use is 2,500 kWh electricity and 9,500 kWh gas. Your annual statement shows your own figures.

Capped annual cost · October–December 2026

£1,724

£144 a month · £33 a week

Electricity unit rate26.32p/kWh
Electricity standing charge54.83p/day
Electricity a year£858
Gas unit rate7.97p/kWh
Gas standing charge29.68p/day
Gas a year£865
Same use, July–September 2026£1,664 (+£60)

Maximum a supplier can charge on a standard variable tariff. Electricity excludes VAT (removed until 31 March 2027); gas includes 5% VAT. Standing charges are payable whether or not you use energy.

What changed on 1 October 2026

Ofgem set the cap for 1 October to 31 December 2026 on 26 August 2026. For a typical household paying by Direct Debit the annual figure rose 4% to £1,723; the prepayment cap rose to £1,678. Gas drove the increase: the average gas unit rate went from 7.33p to 7.97p per kWh, a 9% rise, while electricity moved only from 26.11p to 26.32p. The electricity standing charge fell from 57.19p to 54.83p a day because VAT was removed from domestic electricity for six months; gas still carries 5% VAT and its standing charge edged up to 29.68p.

On Ofgem’s typical consumption (2,500 kWh electricity, 9,500 kWh gas) the GB-average Direct Debit split is £858 electricity and £865 gas, £1,724 together against £1,664 last quarter. The cap is a ceiling on the unit rate and standing charge, not on the bill: use more and you pay more.

Every region, Direct Debit, single-rate electricity and gas

Ranked by the typical annual bill. Click a region for all nine payment-method tables, the previous quarter, and the network operator behind the standing charge.

RegionElec p/kWhElec p/dayGas p/kWhGas p/dayTypical billvs Jul–Sep
Merseyside and Northern Wales27.8667.667.9130.08£1,805+£56
South Western England26.5855.588.1229.31£1,746+£59
Southern Wales26.5555.418.0929.96£1,744+£63
South Eastern England26.8852.328.0529.26£1,735+£62
Southern Scotland26.1161.417.8729.89£1,734+£60
Yorkshire25.6061.677.9029.77£1,724+£60
North Eastern England25.4661.587.9229.79£1,722+£59
Southern England26.4747.818.1729.16£1,719+£57
Northern Scotland26.3555.147.8729.87£1,717+£53
Eastern England26.6151.847.9129.34£1,713+£62
West Midlands25.6057.237.9029.71£1,708+£60
London26.6042.928.1530.20£1,706+£64
North Western England26.4945.687.8629.81£1,684+£63
East Midlands25.3651.457.8229.41£1,672+£61
Great Britain average26.3254.837.9729.68£1,724+£60

Electricity excludes VAT for this period; gas includes 5% VAT. Multi-rate (Economy 7), prepayment and standard-credit figures are on each region page. Source: Ofgem, read 12 September 2026.

Who the cap protects — and who it does not

The cap applies to standard variable (default) tariffs for households in England, Scotland and Wales, whether you pay by Direct Debit, standard credit or prepayment meter. It does not apply to fixed-price deals you have agreed, to Northern Ireland (regulated separately), to heat networks or heating oil, or to any business supply. A business on a deemed or out-of-contract rate can be paying double the domestic cap with no regulator ceiling — the back-billing calculator and a free contract review are where that gets fixed.

How the level is set

Ofgem rebuilds the cap every three months from wholesale energy costs (the largest and most volatile element), network costs for the wires and pipes, policy costs for schemes such as the Warm Home Discount, supplier operating costs, a fixed profit allowance, headroom for uncertainty, a “levelisation” allowance so prepayment and Direct Debit customers pay the same standing charge, and VAT. The regional differences come almost entirely from network costs, which is why the same supplier charges a different standing charge in Liverpool and in London.

Dates

  • 1 October to 31 December 2026 — current cap, announced 26 August 2026.
  • 1 January to 31 March 2027 — announced by 25 November 2026.
  • 1 April to 30 June 2027 — announced by 23 February 2027.

Related

Sources

FAQs

Quick answers

What is the energy price cap from 1 October 2026?
£1723 a year for a typical dual-fuel household paying by Direct Debit — up 4% on the £1663 July–September level. The cap limits the unit rate and standing charge, not the total bill.
What are the October 2026 unit rates?
On average 26.32p per kWh for electricity (standing charge 54.83p a day) and 7.97p per kWh for gas (29.68p a day) for Direct Debit customers. Rates differ by region — see the table.
Why does the cap differ by region?
Network charges — the cost of the local wires and pipes — differ between the 14 distribution regions and are passed through the cap. Merseyside and North Wales pays the highest electricity standing charge; London the lowest.
Does the cap apply to businesses?
No. Business supplies are not price-capped. Microbusinesses on deemed or out-of-contract rates typically pay far more than the domestic cap — a contract review is the fix.
When is the next change?
Ofgem announces the 1 January to 31 March 2027 cap by 25 November 2026. Analysts expected a further rise in January 2027 when the October cap was set.
Why is VAT missing from electricity?
The government removed VAT from domestic electricity for six months from 1 October 2026 to 31 March 2027, which is why the electricity standing charge fell even though wholesale costs rose. Gas still carries 5% VAT.
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