October 2026 energy price cap: what £1,723 means for your bill

Ofgem's published Direct Debit averages put electricity at 26.11p/kWh plus 57.19p/day in July–September and 26.32p/kWh plus 54.83p/day in October–December. Gas moves from 7.33p/kWh plus 29.04p/day to 7.97p/kWh plus 29.68p/day. The averages include 5% VAT on gas in both periods; the temporary electricity VAT rate is zero from 1 October 2026 to 31 March 2027. These are national averages, not a uniform tariff available at every postcode.

Ofgem's October summary uses 2,500 kWh electricity and 9,500 kWh gas per year for both bars. The cap rose about 3.6%, rounded to 4% by Ofgem; it did not add £60 to every bill. The previous quarter's revised-usage summary explains why you must not compare today's £1,723 with an older headline based on 2,700 kWh electricity and 11,500 kWh gas. Changing the illustrative usage did not itself change the rates charged to customers. The quarter's £1,723 is a yearly equivalent at October's rates, not a forecast of your next 12 months.

A practical sensitivity test: another 1,000 kWh of gas in a year adds £79.70 at October's average gas unit rate, versus £73.30 at July's; an extra 1,000 kWh of electricity adds £263.20 versus £261.10. These examples change one fuel's usage at a time and hold its standing charge and the other fuel unchanged. They are arithmetic illustrations from Ofgem's rounded rates, not tariff quotes or forecasts of extra winter use.

Your standing charges are due even with zero consumption. Over 365 days the two October national-average Direct Debit standing charges sum to approximately £308.46 (54.83p + 29.68p per day); for July they were approximately £314.74. That £6.28 reduction at zero use does not offset the £60 increase at Ofgem's typical consumption. The reason is gas: the extra 0.64p on each gas kWh costs a typical 9,500-kWh user £60.80 a year before other changes. This is why trimming gas usage, where safe, matters more to the quarter-on-quarter change than hunting for pennies in electricity standing charges.

Ofgem says the cap limits variable-tariff unit rates and standing charges, not the total you can spend. It excludes fixed tariffs, heat networks and heating oil. Economy 7 customers also face separate peak/off-peak rates: do not substitute the single-rate average for your meter's terms.

The October regulatory summary shows annualised typical figures of £1,723 for Direct Debit, £1,861 for standard credit, and £1,678 for prepayment; their like-for-like July figures were £1,663, £1,796 and £1,620 respectively. That is a payment-method comparison at Ofgem's reference consumption, not a promise that changing payment method cuts your individual bill by the headline difference. Direct Debit and prepayment have the same standing-charge levelisation in the regulator's methodology; they do not necessarily have identical total annual bills.

Look up your region's rate and meter type in Ofgem's regional tables, then check your own bill for separate gas and electricity annual kWh usage. A household with unusually high gas use can face a much larger increase than the headline; a household using little gas will see less. Northern Ireland has different energy regulation and is outside this Great Britain cap. Our savings hub offers ways to budget around variable household costs.

Do not accept a fix simply because it is below £1,723. A fix is outside Ofgem's variable-tariff cap; its unit rates, standing charges, duration and exit fees can differ. Enter your annual kWh by fuel and postcode into the quote, compare the full estimated annual cost against your current capped rates at the same consumption and payment method, then account for any exit fees. A low annual estimate based on lower assumed usage is not a cheaper tariff. For a low-usage home, the daily standing charge deserves particular attention.

The 3 October BBC report says Cornwall Insight forecast a £1,999 typical annualised cap for January 2027, equivalent to a much sharper rise than October's. That is a forecast, not an Ofgem decision or a firm price for the entire year. A 12-month fixed tariff and a single-quarter annualised cap are not comparable cash-flow periods: ask what happens over all four quarters and what you would pay to leave if prices fall. See the contrasting arguments in our case for fixing and case against a panic fix; their older January figures are superseded by the newer forecast, not guarantees of future prices.

The Warm Home Discount scheme gives eligible households a one-off £150 discount on electricity bills for winter 2026–27. GOV.UK says the scheme reopens in October; at the time of this update its page still says closed. Check eligibility and your supplier's guidance rather than assuming a payment will arrive on a particular date. Some eligible people in Scotland must apply through their supplier; the scheme does not cover Northern Ireland. Prepayment customers can also qualify, with a voucher among the possible ways suppliers deliver the discount.

If the October increase makes your direct debit unaffordable, contact your supplier promptly about a payment plan and available support rather than cancelling payments without a plan. Energy UK told the BBC on 3 October it wants more targeted help and debt relief; a proposal is not an enacted discount. For home improvements, start with our energy grants guide and verify eligibility before committing to work.