Households on standard variable energy tariffs face new prices from today, as Ofgem’s October energy price cap takes effect.
The annualised benchmark for a typical household using gas and electricity and paying by Direct Debit has risen by 4% to £1,723. The new cap covers 1 October to 31 December 2026 across England, Scotland and Wales. Ofgem
For customers checking their supplier’s latest email, the headline figure is only a starting point. The more useful details are the rates attached to their own tariff, their energy consumption and how their monthly payments have been calculated.
Quick Answer: What Has Changed Today?
The October 2026 energy price cap introduces new unit rates and standing charges for households on default tariffs. The £1,723 figure is an annualised estimate based on typical consumption, rather than a maximum bill or an amount payable during the three-month period.
Customers using more energy can pay more than that benchmark; those using less can pay less. Ofgem
October 2026 Energy Rates and Standing Charges
Ofgem lists the following national averages for customers paying by Direct Debit:
| Charge | 1 October–31 December 2026 |
|---|---|
| Electricity unit rate | 26.32p per kWh |
| Electricity daily standing charge | 54.83p |
| Gas unit rate | 7.97p per kWh |
| Gas daily standing charge | 29.68p |
Gas figures include 5% VAT. Electricity figures reflect the temporary removal of VAT from electricity bills.
These are averages, rather than the exact rates every customer will receive. Charges vary by region and payment method, so check your supplier’s tariff notice before using them to estimate a bill. Ofgem
Why Are Energy Prices Rising?
Ofgem attributes the increase to higher wholesale gas prices linked to the conflict in the Middle East.
The regulator says the new figures already account for the government’s temporary electricity VAT reduction. Higher gas costs mean households may not see that tax reduction translate into a lower combined energy bill. Ofgem
For households preparing a winter budget, it helps to separate two questions: what has happened to the tariff, and how much energy the home is likely to use. A national percentage change cannot answer both.
Who Is Affected by the New Price Cap?
The cap applies to default tariffs, often described as standard variable tariffs. It covers several payment arrangements, including Direct Debit, payment on receipt of a bill and prepayment meters.
A fixed-rate tariff is not repriced simply because the quarterly cap changes. Customers should check their contract and supplier’s notice rather than assume the headline increase applies to their deal. Ofgem
If you are unsure which tariff you have, look for its name and end date on a recent bill or in your online account. Ask the supplier to clarify anything that remains unclear.
What Does the Electricity VAT Change Mean?
Ofgem’s October guidance says VAT has been removed from electricity bills for the period 1 October 2026 to 31 March 2027. Gas remains subject to 5% VAT.
Because the published October electricity rates already reflect this change, households should not subtract another 5% from those figures. Ofgem
When checking a supplier’s calculation, use the rates and tax treatment shown on the actual bill. Keep the previous tariff notice nearby so you can identify what has changed.
Four Things to Check on Your Energy Account
1. Confirm Your Tariff
Find out whether you are on a standard variable or fixed tariff. If a fixed deal is nearing its end, note the expiry date and ask what happens afterwards.
Keep that information alongside any new offer. Comparing a current contract with a proposed replacement is easier when both are written down.
2. Look at Unit Rates and Standing Charges
Do not rely solely on the estimated monthly payment displayed in a quote. Record the electricity rate, gas rate and each standing charge.
Use the same consumption figures when comparing options. Otherwise, a lower estimate may reflect a different usage assumption rather than a cheaper tariff.
3. Check the Usage Behind the Estimate
Review the consumption recorded on your account. If it looks unusual, ask the supplier how it was calculated and whether the readings are actual or estimated.
A useful question is: “Which annual usage figures have you used to work out this payment?” That gives the supplier something specific to explain.
4. Review Any Change to Your Direct Debit
If your payment has changed, ask for a breakdown showing the tariff, expected consumption and account balance used in the calculation.
Keep a copy of the explanation. This makes it easier to follow up if the figures on a later statement do not match what you were told.
Should You Switch to a Fixed Energy Tariff?
A fixed offer deserves a comparison rather than an automatic yes or no.
Put the proposed rates beside your current rates and check the contract length, exit fees and any conditions attached to discounts. Consider whether the arrangement suits your household before committing.
The cap is reviewed quarterly, while a fixed contract can last longer. No one can judge the value of a deal from its monthly estimate alone. Ofgem’s guidance explains the difference between capped default tariffs and fixed arrangements. Ofgem
Preparing Your Home for Winter
Alongside reviewing the account, make a short list of maintenance jobs your property needs before colder weather arrives.
Lifeinism’s autumn home maintenance checklist provides a starting point for organising those checks.
Prioritise existing faults and work that needs a qualified professional. Keep quotes, service records and supplier correspondence together so household decisions are based on clear information.
What If You Cannot Afford Your Energy Payments?
Contact your supplier promptly and explain the difficulty. Ofgem says suppliers must help customers who ask for support; options may include a repayment arrangement or emergency credit where appropriate. Ofgem
Before the conversation, write down your account number, the payment requested and what you can currently afford. Ask the supplier to explain the available options and confirm any agreement in writing.
Frequently Asked Questions
What is the October 2026 energy price cap?
The annualised benchmark is £1,723 for a typical dual-fuel household paying by Direct Debit. It applies from 1 October to 31 December. Ofgem
Is £1,723 the most a household can pay?
No. The cap controls tariff charges, rather than setting a maximum total bill. Consumption still affects the amount owed. Ofgem
Does the cap apply throughout the UK?
Ofgem’s domestic price cap covers England, Scotland and Wales. Northern Ireland has separate arrangements. Ofgem
Will my fixed tariff rise because the cap changed?
The quarterly cap change does not itself reprice a fixed tariff. Check your contract and any separate supplier notice. Ofgem
Are the rates in the table my exact rates?
Not necessarily. They are national averages for Direct Debit customers. Regional and payment-method differences apply. Ofgem
Where can I check the official figures?
Visit Ofgem’s energy price cap rates page, then compare it with your supplier’s notice.
Rates checked on 1 October 2026. Confirm the charges applicable to your address, payment method and tariff with your supplier.
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