When do the October 2026 price cap rates take effect?

The October 2026 cap takes effect on 1 October 2026 and runs until 31 December 2026. Until 30 September 2026, the July 2026 cap rates still apply.

Why do I see both £1,723 and £1,935 reported for the same change?

They describe the same underlying unit rates. £1,723 uses Ofgem's current typical-use assumptions, updated 1 July 2026 to reflect falling average household consumption. £1,935 uses the older assumptions still used for comparison with earlier-year figures. Neither is wrong. They are different yardsticks for the same rates.

Will the VAT cut mean my bill falls from 1 October?

Not on its own. The VAT cut will reduce what would otherwise have been a larger rise on electricity, but the overall cap will still go up 4% from the July level because of gas. It is a genuine saving relative to what the rise would have been without it, not a reduction in your actual bill compared to last quarter.

When is the next price cap announcement after October?

Ofgem is due to announce the January to March 2027 cap by 25 November 2026.

Do I need to do anything before 1 October if I am on a standard variable tariff?

No. Suppliers will apply the new rates automatically from 1 October 2026. If you want to check whether a fixed deal would suit you better before then, you can compare current options at your postcode.

Will this affect fixed tariff customers from 1 October?

No. Fixed tariffs sit outside the price cap and are not affected by this change until your current term ends.

Energy Price Cap October 2026: What Is Changing and Why

What this guide covers

This guide explains what Ofgem announced on 26 August 2026 for the October 2026 price cap, including the new VAT rate on electricity from 1 October, and why gas and electricity bills are expected to move in different directions when the new quarter begins. It is educational information on how the cap works, not a substitute for checking your own bill or comparing tariffs directly.

Utility Matchmaker is an information and referral service. For live tariffs at your postcode, use the partner comparison tool.

The July 2026 cap is still in force

Until 30 September 2026, households on standard variable tariffs remain on the July 2026 cap rates. The headline figure under Ofgem's updated typical consumption assumptions is still £1,663 per year. Your supplier will not apply the October rates before 1 October 2026.

For the rates and context that apply to your bill today, see our energy price cap July 2026 guide and the price cap rates by region tool.

What Ofgem announced for October 2026

Ofgem confirmed on 26 August 2026 that the energy price cap for 1 October to 31 December 2026 will be £1,723 a year for a typical dual-fuel household paying by direct debit, up £60, or 4%, from £1,663. This is the maximum a supplier will be able to charge per unit of energy and standing charge for someone on a default tariff from that date. It is not a cap on any individual bill, which still depends on how much energy you actually use.

You may also see the same change reported as a rise to roughly £1,935 rather than £1,723. Both figures describe identical unit rates. Ofgem updated its assumed typical household usage on 1 July 2026 to reflect falling average consumption, so any figure quoted before that date on the old basis is not directly comparable to one quoted since. See our guide on why there are two figures for the full explanation.

Why electricity and gas will move differently

The rise will not be spread evenly across your bill. Electricity's unit rate will rise only slightly, from 26.11p to 26.32p per kWh, and its standing charge will fall, from 57.19p to 54.83p a day. Gas will move much more: its unit rate will rise from 7.33p to 7.97p per kWh, and its standing charge will rise from 29.04p to 29.68p a day.

The reason for the gap is the VAT change landing on the same day as the cap. From 1 October 2026 to 31 March 2027, VAT on domestic electricity will drop from 5% to 0%. Gas will keep its 5% VAT throughout. Ofgem's own figures suggest the cap would have risen by around 6% without the VAT cut, so the VAT change is doing real work here. It will arrive as a smaller rise on your electricity rather than as money back on your bill. Gas has no equivalent offset, which is why its increase will be the more noticeable one this quarter.

What are the announced unit rates from 1 October 2026?

The national average rates under the October 2026 price cap for direct debit customers, effective from 1 October, will be:

Electricity unit rate: 26.32p per kWh (0% VAT from 1 October 2026)
Electricity standing charge: 54.83p per day (0% VAT from 1 October 2026)
Gas unit rate: 7.97p per kWh (5% VAT, unchanged)
Gas standing charge: 29.68p per day (5% VAT, unchanged)

These are national averages. Your actual rates depend on your distribution network region. Regional rates vary slightly due to differences in local network costs.

For your specific regional rates once the October cap is in force, see the price cap rates by region tool.

What this will mean for your bill from 1 October

If you are on a default or standard variable tariff, you do not need to do anything before 1 October. Your supplier will apply the new rates automatically from that date. What you pay will depend on your actual usage, region, payment method, and meter type, not just the headline figure. Households with higher gas usage, particularly during the colder months this cap period covers, will feel the gas-side increase more than the relatively flat electricity side.

If you are on a fixed deal, none of this will affect your rate until your fixed term ends, since fixed tariffs sit outside the price cap entirely.

To compare fixed and variable options at your postcode using current July cap rates, use the fixed vs variable calculator.