Ofgem energy price cap rises 4% from October 1; expect £5 more per month
Ofgem confirmed that the energy price cap valid from 1 October to 31 December will increase by 4% to £1,723 per year for a typical use household. The price cap is going up because of continued pressure on oil and gas supplies as a result of the Middle East conflict.
What's changing
The energy price cap for 1 October to 31 December 2026 increases by 4% to £1,723 per year for a typical household. This is the second consecutive price cap increase and the third increase in total in 2026. Gas did the damage—up 8.7%—while the electricity standing charge actually fell.
The breakdown
Electricity unit rates are 26.32p per kWh with a 54.83p per day standing charge. Gas rates are 7.97p per kWh with a 29.68p per day standing charge. The increase will be around £5 per month for the average household paying by Direct Debit. Electricity VAT has dropped to 0%, so the underlying pre-tax electricity price rose considerably more than the headline 0.8% suggests—the tax cut is absorbing most of it.
If you're renting or own your home in the UK: your energy bills will rise noticeably through the end of the year, with gas the main culprit. There are fixed deals currently on the market that save more than £100 against the current price cap of £1,663, so they'll save even more when the cap goes up. If you're on a standard variable tariff and your contract is up for renewal soon, locking in a fixed rate now may offer better protection than waiting for the higher cap to apply.
Sources
Independent app, not a government. General information, not advice. The official source:
