Energy Price Cap to rise by 4% from October to December 2026 - what this means for you
As we head into the colder months, you may be wondering what the latest energy price cap means for your household.
How much is the energy price cap going up in October?
Ofgem, the UK’s energy regulator, has announced today the new energy price cap for 1 October to 31 December 2026. The price cap will be £1,723 a year for a typical household, up 4% from the current cap. Prices are rising, but the temporary VAT cut on electricity has kept them lower than they would have been.
Here's what the change means for your energy bill, what to expect as the weather gets colder and what you can do to manage your energy costs this winter.
What’s changing?
This means if you’re on a standard variable tariff or a tariff that tracks the price cap, your energy bill will increase from 1 October 2026.
The new Ofgem price cap applies from 1 October to 31 December 2026. It sets the maximum unit rates and standing charges for standard variable tariffs.
The tables below show the average rates for customers who pay by Direct Debit across England, Scotland and Wales. Your rates may be different depending on where you live, so check your tariff for your exact rates.
Electricity rates
| Current cap 1 July–30 September (includes 5% VAT) | New cap 1 October–31 December (0% VAT) | |
|---|---|---|
| Unit rate | 26.11p per kWh | 26.32p per kWh (up 0.8%) |
| Standing charge | 57.19p per day | 54.83p per day (down 4.1%) |
VAT: The current electricity rates include 5% VAT. The new rates show 0% VAT, as the VAT rate on domestic electricity is changing from 1 October.
Gas rates
Gas VAT rates aren't changing. The prices below include the 5% VAT.
| Current cap 1 July–30 September (includes 5% VAT) | New cap 1 October–31 December (includes 5% VAT) | |
|---|---|---|
| Unit rate | 7.33p per kWh | 7.97p per kWh (up 8.7%) |
| Standing charge | 29.04p per day | 29.68p per day (up 2.2%) |
Find out more about the price cap
What is the price cap?
Ofgem's price cap limits what energy companies can charge for gas and electricity for customers on standard variable tariffs. Rates are reviewed every three months, so the price you pay for energy can change up or down each quarter.
How does the price cap increase affect me?
In summary
- Anyone on a standard variable or tracker tariff will see an increase in their energy prices from 1 October
- Switching to a fixed tariff may save you money
- With current volatility in the energy market, the price cap looks like it may increase until April next year. Stay informed with our price cap predictions
- From 1 October, the VAT rate on domestic electricity in Great Britain will be temporarily reduced from 5% to 0% following a UK Government decision. Read our blog on what the VAT cut means
How can I tell if I'm on a standard variable tariff?
If you didn't renew your energy tariff when your fixed deal ended, didn't switch providers, or moved into a home and stayed on the tariff already in place, you're likely on a standard variable or default tariff. Across the UK, around 19 million households (roughly 60% to 65% of homes) are still potentially paying more because they are on a standard tariff.
- Check your energy bill: This will give you all the information about the type of tariff you're currently using in your home
- Can't find a bill? Get in touch with your energy supplier: They'll let you know what tariff you're on
Will my energy bill go up in October?
If you're on a standard variable or tracker tariff, your prices will change from 1 October in line with the new price cap.
But your bill won't necessarily change by the same percentage as the price cap.
That's because what you pay depends on how much energy you use. And as temperatures drop, you may naturally use more energy to heat and light your home.
The price cap isn't a cap on your total bill. It's a limit on the unit rates and standing charges suppliers can charge on certain tariffs.
Find out more about the energy price cap
Why could my energy use be higher in winter?
It's normal to use more energy during the colder, darker months.
You might have your heating on for longer, use more hot water or switch on lights earlier in the day.
So while the price cap sets the maximum unit rates and standing charges that can apply to certain tariffs, how much energy you use will affect your actual bill.
Small changes to how and when you use energy can help too.
Find ways to save energy
What does the October price cap change mean for EDF customers?
- If you're on an EDF standard variable or tracker tariff, your prices will change from 1 October
- If you're on a fixed tariff, the new price cap doesn't change your agreed unit rates
If you're unsure which tariff you're on, check your account or your latest bill. Check your EDF tariff in MyAccount or find it on your latest bill.
October price cap: EDF’s Head of Portfolio Pricing on what to expect
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."
David Edmonds | Head of Portfolio Pricing | EDF Wholesale & Business Services
Watch: what does the energy price cap mean for you?
As energy prices change and we head into winter, our short video explains what the price cap means, who it affects and what you can do.
How can I stay updated on changes to the price cap?
It can be tricky to keep on top of price cap changes.
Our experts keep you in the loop: Our industry experts' price predictions for the coming year. They can help you work out which tariff type is best for you. These are updated weekly. See our price cap predictions
What can I do to manage my energy bill?
The price cap might set your rates, but there’s still plenty you can do to help keep your bills in check:
Check your tariff
After reviewing the price cap changes, see what tariff’s best for your home – compare the price cap prices against our tariffs.
Switch to a fixed or tracker tariff
Once you’ve compared prices and considered the new price cap changes, you may find switching to a fixed or tracker tariff the best option for the winter – see if you can save money with an energy quote. Now may be the time to look at fixed energy deals. Our current fixed tariff lets you lock in your energy prices for 24 months, so you can sit back and relax knowing your rates won't change.
It may be time to switch energy suppliers
If you feel you’re paying too much for your energy, and with the new price cap changes coming into force in July, it may be a good time to switch energy suppliers. For more help, read our guide to switching energy suppliers.
Pay by Direct Debit
It’s usually cheaper to pay for your energy by Direct Debit, rather than by cash, card or cheque – for more handy tips, visit our energy tips and advice.
Know your energy spend
Keep an eye on your energy: If you have a smart meter, use it to track how much energy you’re using. Energy Hub brings your smart data to life and offers customers a breakdown of how much
Don’t have a smart meter?
Submit regular readings to your energy supplier so you only pay for what you use; we can help you get a smart meter installed.
Ask for help if you need it
If things get tough, please get in touch as soon as you can.
Looking ahead
At EDF, we’re working to make energy simpler, fairer and better value for the long term.
From energy tariffs designed to help you use energy when it’s cheaper, to smart meters that give you access to our best offers, we’re helping you get more from your energy. We’re also supporting customers who want to make the switch to low-carbon technology, working with Which? Trusted installers to help make it easier.
As we help drive the electrification of Britain, we’re continuing to improve our customer service and make it easier for people to choose cleaner ways to heat, travel and power their homes. Together, we can build a cleaner energy future – while helping you save energy and money today.
Switch energy supplier
Read our helpful guide on everything you need to know before switching energy supplier!
Smart time of use tariffs
Our smart time-of-use tariff guide offer different electricity rates throughout the day, giving you more opportunities to save during off-peak hours. Find out more about how they work.
Understand what fixed energy tariffs are
Find out how fixed tariffs work, their benefits and whether a fixed energy deal is best for your home.
Sharing is caring!
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