Energy bills are set to change again this winter, with Ofgem's price cap rising by 4% for a typical household using gas and electricity and paying by Direct Debit. This change will be in effect from 1 October to 31 December 2026.
The new headline annual figure for the cap will be £1,723, an increase from £1,663. This figure illustrates what a household using Ofgem’s typical amount of energy would pay if the October rates lasted for a full year.
The rise is primarily due to higher wholesale gas prices. While there will be a temporary removal of VAT from domestic electricity bills from 1 October 2026 to 31 March 2027, this does not offset the wider increase for a typical home using both fuels. Gas bills are estimated to rise by around 8% under the new cap, while households not using gas will see a smaller increase of less than 1%.
The price cap applies to default or standard variable tariffs and covers eligible customers paying by Direct Debit, on receipt of a bill, or using a prepayment meter. If you are on a fixed tariff, your agreed unit rates will not automatically change, but the electricity VAT reduction should be reflected in your charges.