Energy price cap from 1 October 2026: what changed
Ofgem raised the energy price cap by 4% for a typical household paying by direct debit, from 1 October to 31 December 2026. At the same time the government removed VAT from electricity bills until 31 March 2027.
Published 8 October 2026Written by the MyBillChecker team
The new cap rates
These are Ofgem's GB averages for a default tariff paid by direct debit. Your own rates depend on your region and how you pay.
Unit rate
Standing charge
Electricity (no VAT)
26.32p per kWh
54.83p per day
Gas
7.97p per kWh
29.68p per day
The cap limits the unit rate and standing charge, not your total bill. If you use more, you pay more.
What to check on your next bill
No VAT on electricity used from 1 October. This covers fixed tariffs and prepayment top-ups too, in England, Scotland and Wales. Gas still carries VAT at 5%. If your bill adds VAT to electricity used from 1 October, ask your supplier to correct it.
Rates that match your tariff. If you're on a standard variable tariff, your rates should not be above the cap for your region.
Actual readings. Send a meter reading around 1 October so usage isn't charged at the wrong rate.
What happens next
Ofgem will announce the cap for 1 January to 31 March 2027 on 25 November 2026. We'll update this page when it does.