The energy price cap limits the rates suppliers can charge households on standard variable tariffs. It will rise by around 4% on 1 October, following July's 13% increase. Here's what that means for your bills and how Fuse could help you pay less. 16
The cap will rise from £1,663 to £1,723 a year for a typical household using gas and electricity and paying by Direct Debit. The new rates apply from 1 October to 31 December 2026. 1
These are the average Direct Debit rates across England, Scotland and Wales: 2
| Charge | Electricity | Gas |
|---|
| Price per unit of energy | 26.32p per kWh | 7.97p per kWh |
| Daily standing charge | 54.83p | 29.68p |
Rates vary by location. Check the rates for your region.
Higher wholesale gas prices are driving the increase. Ofgem, the energy regulator, says the ongoing conflict in the Middle East has pushed up the prices suppliers pay for gas. 1
VAT on domestic electricity will fall from 5% to 0% between 1 October 2026 and 31 March 2027. Gas will remain subject to 5% VAT. 2
The October cap already includes this reduction, so it won't be an extra discount on the £1,723 figure. Customers on fixed tariffs will also benefit. 1
No. The cap increase won't change your agreed fixed tariff rates.
With a Fuse fixed tariff, you can lock in your energy rates for an agreed period. Your total bill will still depend on how much energy you use.
Get a quote for your home and see how Fuse compares with your current deal.
Check the contract length and any exit fees before switching. As the cap changes every three months, a fixed deal below today's cap may not stay below future caps.
Ofgem is due to announce the next cap by 25 November 2026, with the new rates taking effect on 1 January 2027. 6
Until then, predictions remain estimates and can change as energy prices move. 3
- Check your current deal. If your energy prices aren't fixed, they may change in October. Your supplier will tell you what you'll pay.
- Send a meter reading around 1 October. This helps your supplier charge the right prices for energy used before and after the change.
- See if you could pay less. Get a Fuse quote to see how we compare.
- Ask for help if you're struggling to pay. Speak to your supplier early. Citizens Advice also explains what support you can get. 5
Could you pay less with Fuse? Get a quote based on your home and energy use.
