Ofgem’s energy price cap rises to £1,723 a year from 1 October to 31 December 2026 for a typical dual-fuel household paying by Direct Debit. That headline is an illustration, not a maximum bill: what a household actually pays still depends on how much energy it uses, its region, meter and payment method.
What are the October 2026 unit rates?
Ofgem’s national averages for Direct Debit customers put single-rate electricity at 26.32p per kWh with a 54.83p daily standing charge. Gas averages 7.97p per kWh with a 29.68p daily standing charge.
For July to September, the comparable published figures were 26.11p and 57.19p for electricity, and 7.33p and 29.04p for gas. Electricity’s average unit rate edges up while its standing charge falls; both average gas components rise.
Why is the headline cap up 4%?
The typical Direct Debit figure rises from the previous cap period, but bills cannot be compared by simply applying 4% to every household. The cap limits unit rates and standing charges, not total consumption. Regional rates differ, and standard credit and prepayment customers have separate figures.
Ofgem says its calculation reflects wholesale energy, network, policy and supplier operating costs, plus allowances for risk and supplier earnings. The regulator resets the cap every three months.
What changed with VAT?
Ofgem’s October table says the published gas figures include 5% VAT, while electricity has no VAT from 1 October 2026 to 31 March 2027. Because that treatment changed, Ofgem cautions that costs cannot be compared directly with earlier periods. Readers should use the figures printed on their own tariff notice rather than relying only on national averages.
Who is protected by the price cap?
The cap covers households in England, Scotland and Wales on standard variable or default tariffs. Ofgem’s consumer guide says it does not protect fixed tariffs, business energy contracts, heat networks or heating-oil users.
Economy 7 and other multi-rate tariffs can have different peak and off-peak prices. The combined structure must remain within the relevant cap, but the simple single-rate average is not the right number for every meter.
How can you estimate your own bill?
Take the electricity and gas usage on a recent annual statement, multiply each by the applicable unit rate, then add 365 days of standing charges. Use the regional rates and payment method shown by your supplier. The £1,723 figure assumes typical consumption, so a low-use home can pay less and a high-use home can pay more.
Before switching or fixing, compare the full tariff: unit rates, both standing charges, exit fees, term and payment conditions. A fixed deal buys price certainty, but it is not automatically cheaper than the cap.
Reporting basis: Ferdiox checked Ofgem’s October–December 2026 cap tables and consumer guidance on 8 September 2026. Figures are national averages and may not match an individual tariff.