In this section: Your bills
The energy price cap explained
Last updated . Figures refresh every night. How each figure is worked out.
From 1 October to 31 December 2026 the Ofgem price cap is £1,723 a year for a household with typical consumption paying by direct debit. It caps unit rates and standing charges, not your total bill: electricity at 26.32p a kWh plus 54.83p a day, and gas at 7.97p a kWh plus 29.68p a day. Use more and you pay more. Figures from Ofgem, checked by hand on 22 September 2026.
Figure as of 22 September 2026. Source: Ofgem.
Key figures
- £1,723Typical bill a year, 1 October to 31 December 2026 down on a year earlier: −£32 (−1.8%) vs 1 October 2025
- 26.32pElectricity, a kWh Plus 54.83p a day standing charge
- 7.97pGas, a kWh Plus 29.68p a day standing charge
- 10%Of a typical bill is tax and levies £166 of £1,663, July to September 2026
Source: Ofgem.
What is the short version?
- Not a cap on your bill: it limits the price per unit and per day on a standard variable tariff. A fixed tariff is not covered, and Ofgem resets the cap every three months.
- Standing charges add up: 54.83p a day for electricity and 29.68p for gas, paid whatever you use.
- Prepayment: electricity is 26.11p a kWh and gas 7.33p on a prepayment meter.
- The peak so far: £3,549 a year for a typical household from Oct 22, when the government guarantee held bills to £2,500.
What are the current unit rates and standing charges?
Figure as of 22 September 2026. Source: Ofgem. Checked by hand 22 September 2026.
Figure as of 22 September 2026. Source: Ofgem. Checked by hand 22 September 2026.
Figure as of 22 September 2026. Source: Ofgem. Checked by hand 22 September 2026.
Figure as of 22 September 2026. Source: Ofgem. Checked by hand 22 September 2026.
Figure as of 22 September 2026. Source: Ofgem. Checked by hand 22 September 2026.
Standing charges vary by region; these are the national averages Ofgem publishes. VAT on domestic electricity is zero from 1 October 2026 to 31 March 2027; gas stays at 5%.
What does the price cap actually cap?
It caps the maximum a supplier can charge per unit of energy and per day as a standing charge, on a standard variable tariff. It does not cap your bill. The headline £1,723 figure is what a household using a typical amount would pay over a year at those rates; use more energy and you pay more.
You are not protected by the cap if you are on a fixed tariff, and Ofgem resets the cap every three months. Ofgem reduced its definition of typical use in July 2026, so cap levels before and after that change are not directly comparable.
How has the price cap changed?
The numbers behind this chart
| Quarter | Cap | Paid under the guarantee |
|---|---|---|
Oct 21Details for Oct 21 | £1,277 | — |
| ||
Apr 22Details for Apr 22 | £1,971 | — |
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Oct 22Details for Oct 22 | £3,549 | £2,500 |
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Apr 23Details for Apr 23 | £3,280 | £2,500 |
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Jul 23Details for Jul 23 | £2,074 | — |
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Oct 23Details for Oct 23 | £1,834 | — |
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Jan 24Details for Jan 24 | £1,928 | — |
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Apr 24Details for Apr 24 | £1,690 | — |
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Jul 24Details for Jul 24 | £1,568 | — |
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Oct 24Details for Oct 24 | £1,717 | — |
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Jan 25Details for Jan 25 | £1,738 | — |
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Apr 25Details for Apr 25 | £1,849 | — |
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Jul 25Details for Jul 25 | £1,720 | — |
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Oct 25Details for Oct 25 | £1,755 | — |
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Jan 26Details for Jan 26 | £1,758 | — |
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Apr 26Details for Apr 26 | £1,641 | — |
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Jul 26Details for Jul 26 | £1,862 | — |
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Oct 26Details for Oct 26 | £1,935 | — |
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Figure as of 22 September 2026. Source: Ofgem.
Annualised typical bill, direct debit. The 2026 Q3 and Q4 points use the pre-July-2026 typical-use basis (£1,862 and £1,935) so the line stays comparable. Earlier figures are approximate.
What does the capped price pay for?
Wholesale energy is the largest single part. Tax and policy levies are about £166 of the £1,663 typical bill, 10% of it. How much of my energy bill is tax breaks this down in full.
- Wholesale energy £698
- Networks £382
- Operating, debt and industry £366
- Policy costs tax £83
- VAT tax £83
- Supplier margin £42
- Not itemised £9
- Typical annual bill £1,663
Show as a table
| Part | Pounds a year |
|---|---|
| Wholesale energy | £698 |
| Networks | £382 |
| Operating, debt and industry | £366 |
| Policy costs (tax) | £83 |
| VAT (tax) | £83 |
| Supplier margin | £42 |
| Not itemised | £9 |
| Total: Typical annual bill | £1,663 |
Figure as of 22 September 2026. Source: Ofgem.
Shares of the July-September 2026 cap. Pound figures are those shares applied to the total and rounded. In the October cap wholesale rises to about 47% and electricity VAT drops to zero.
What about prepayment meters?
| Tariff | Electricity per kWh | Electricity standing charge | Gas per kWh | Gas standing charge |
|---|---|---|---|---|
Direct debitDetails for Direct debit | 26.32p | 54.83p | 7.97p | 29.68p |
| ||||
Prepayment meterDetails for Prepayment meter | 26.11p | 57.19p | 7.33p | 29.04p |
| ||||
Prepayment rates are set separately by Ofgem and published alongside the direct debit rates. Standing charges also vary by region; these are the national averages.
Common questions
- What is the energy price cap now?
- £1,723 a year for a typical dual-fuel household paying by direct debit, from 1 October to 31 December 2026.
- Does the price cap cap my bill?
- No. It caps the unit rate and the daily standing charge. The headline figure is what a household using a typical amount of energy would pay; use more and you pay more.
- What is the electricity unit rate under the cap?
- 26.32p a kWh plus a standing charge of 54.83p a day, on average across regions.
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Sources for this page
| Source | Publisher | Figures as of | Updated | Licence |
|---|---|---|---|---|
| Ofgem, energy price cap unit rates and standing charges | Ofgem | 22 September 2026 | quarterly | Open Government Licence v3.0 |
Each source's figures are used under the licence shown. Our own words, analysis, charts and derived calculations are ours, under CC BY 4.0.