The energy price cap
From 1 October, a typical home pays £1,723 a year under Ofgem's cap, up 4% on the previous quarter.
- Typical annual bill, Q4 2026
- £1,723
- 2,500 kWh electricity, 9,500 kWh gas
- Change on last quarter
- +£60
- from £1,663 in Q3 2026
- Electricity, against the 2022–23 guarantee
- −7.68p a kWh
- 26.32p now, 34.0p under the guarantee
- Gas, against the 2022–23 guarantee
- −2.33p a kWh
- 7.97p now, 10.3p under the guarantee
The guarantee is compared by unit rate because typical bills are not like for like: under it Ofgem’s typical home used 2,900 kWh of electricity and 12,000 kWh of gas a year, against 2,500 and 9,500 now. The guarantee’s rates included 5% VAT. Electricity is VAT-free from 1 October 2026 to 31 March 2027; gas still carries 5% VAT. GOV.UK guarantee rates.
Typical annual bill
Numbers mark the events listed below. The dashed line marks Ofgem's new typical use from Q3 2026.
Point at the chart, an event or a row.
- Ofgem price cap announcements, Direct Debit, GB average.
- Annual bills use Ofgem's typical consumption at the time, which has changed several times; from Q3 2026 it is 2,500 kWh of electricity and 9,500 kWh of gas.
- Unit rates are shown from Q4 2020.
Rates now, Q4 2026
1 October to 31 December 2026, Direct Debit.
| Fuel | Unit rate | Standing |
|---|---|---|
| Electricity | 26.32p | 54.83p |
| Gas | 7.97p | 29.68p |
Unit rates per kWh, standing charges per day.
Electricity is VAT-free from 1 October 2026 to 31 March 2027; gas still carries 5% VAT.
Next, 1 January to 31 March 2027
Ofgem is expected to announce it in late November 2026. The figures appear here once published.
- https://www.ofgem.gov.uk/your-energy-supply/your-energy-bill/energy-price-cap-unit-rates-and-standing-charges
What moved the cap
October 2021
Gas prices surge
Post-pandemic demand met low European storage.
February 2022
Russia invades Ukraine
Russian gas, about 40% of EU imports, was cut back.
April 2022
Cap rises 54% to £1,971
The largest single rise at the time.
October 2022
Energy Price Guarantee
With the cap heading for £3,549, typical bills were held at £2,500.
July 2023
Guarantee ends
Wholesale prices eased and the cap fell back below it.
July 2024
Lowest since the crisis
The cap fell to £1,568, still above pre‑crisis levels.
July 2026
New usage benchmark
Typical use cut to 2,500 kWh electricity and 9,500 kWh gas; a 13% rise like for like.
October 2026
Up 4% to £1,723
Dearer gas, partly offset by VAT-free electricity to 31 March 2027.
Every cap period
| Period | Bill | Elec | Gas |
|---|---|---|---|
| Q4 2026Electricity VAT removed | £1,723 | 26.32p | 7.97p |
| Q3 2026Lower typical-use benchmark | £1,663 | 26.11p | 7.33p |
| Q2 2026 | £1,641 | 24.67p | 5.74p |
| Q1 2026 | £1,758 | 27.69p | 5.93p |
| Q4 2025 | £1,755 | 26.35p | 6.29p |
| Q3 2025 | £1,720 | 25.73p | 6.33p |
| Q2 2025 | £1,849 | 27.03p | 6.99p |
| Q1 2025 | £1,738 | 24.86p | 6.34p |
| Q4 2024 | £1,717 | 24.50p | 6.24p |
| Q3 2024 | £1,568 | 22.36p | 5.48p |
Questions
Ofgem adds up what an efficient supplier pays to serve a typical home (wholesale energy, networks, policy costs, running costs and a margin) and resets it every quarter.
No. It caps the unit rate and standing charge, not the total. Use more and you pay more.
Gas was scarce after the pandemic, then Russia's invasion of Ukraine cut supplies. Gas sets much of the electricity price, so both bills rose.
A government scheme from October 2022 to June 2023 that held a typical bill at £2,500 instead of the cap's £3,549 to £4,279, with the Treasury covering the gap.
Yes: some fixed deals, and time-of-use tariffs such as Agile if you can shift your use. Compare on an Ofgem-accredited site.
That mostly depends on wholesale gas. Bills are below the 2022 to 2023 peak but above pre‑crisis levels, and the cap rose in July and October 2026.
No. It covers homes in England, Scotland and Wales on default tariffs, including prepayment. Northern Ireland has its own regulator.