Home energy guide
The energy price cap explained: October to December 2026
The price cap limits the price per unit and the daily standing charge on standard variable tariffs in Great Britain. It doesn't cap your total bill: use more, pay more. Here's what it means for you this winter.
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Work out your own numbers with the tariff calculator →
Today's rates (1 October to 31 December 2026)
On average, electricity is capped at 26.32p per unit plus 54.83p a day, and gas at 7.97p per unit plus 29.68p a day (direct debit, Great Britain averages, checked 27 October 2026).
See the numbers
| As charged | With 5% VAT | Before VAT | |
|---|---|---|---|
| Electricity unit rate | 26.32p per kWh | 27.64p | 26.32p |
| Electricity standing charge | 54.83p per day | 57.57p | 54.83p |
| Gas unit rate | 7.97p per kWh | 7.97p | about 7.59p |
| Gas standing charge | 29.68p per day | 29.68p | about 28.27p |
The "with 5% VAT" electricity column shows what the same rates would be at the usual domestic VAT rate.
Why no VAT on electricity? There's no VAT on home electricity from 1 October 2026 to 30 June 2027 (HMRC VAT Notice 701/19, checked 2 Nov 2026). Gas still includes 5% VAT.
These are averages. The cap varies by region and how you pay, so your supplier's rates may differ slightly.
What the cap is
- A limit on the price per unit and the daily standing charge, not on your total bill. Use more, pay more.
- It covers standard variable (default) tariffs in England, Scotland and Wales.
- Ofgem sets it every three months, mainly from wholesale, network and policy costs.
What it isn't
- It doesn't cover fixed tariffs, which can be above or below it.
- It doesn't apply in Northern Ireland, Guernsey or Jersey, which have their own regulators and suppliers.
- It doesn't cap each rate on time-of-use tariffs in the same way; check each tariff.
What a typical home pays
For a typical home with gas and electricity, these rates work out at about £1,936 a year: roughly £911 for electricity and £1,025 for gas.
See the numbers
| Units | Standing charge | Total | |
|---|---|---|---|
| Electricity (no VAT) | £711 | £200 | £911 |
| Gas (incl. 5% VAT) | £917 | £108 | £1,025 |
| Total | £1,936 |
Based on 2,700 kWh of electricity and 11,500 kWh of gas (Ofgem's typical values, not re-checked today). This is our calculation, not Ofgem's published figure. With 5% VAT on electricity too, the electricity line would be about £957.
When it changes next
Ofgem announces each cap in advance:
- 25 November 2026 for January to March 2027;
- 23 February 2027 for April to June 2027;
- 26 May 2027 for July to September 2027.
Heads-up: the electricity VAT break is due to end on 30 June 2027 after Budget 2026 extended it by three months (HMRC VAT Notice 701/19, checked 2 Nov 2026), so July 2027 electricity bills may rise by 5% even if the cap stays the same.
Should you stay on the cap?
The cap is a safety net, not always the cheapest deal. You might save with:
- A time-of-use tariff if you have an EV, battery, heat pump or can be flexible. Ofgem notes some suppliers offer half-price or cheaper electricity at weekends or off-peak. See Economy 7 vs smart tariffs.
- A fixed tariff if it's below the cap and you like certainty. See fixed vs variable.
- Fewer standing charges, for example dropping gas after moving to a heat pump. See standing charges explained.
Compare options in the tariff calculator, and see our EV tariff vs price cap guide.
Checking your own rates
Your bill or supplier app shows unit rates in pence per kWh and standing charges in pence per day. On a standard variable tariff, they should be at or below the cap for your region and payment method. If they're higher, you're probably on a fixed or other uncapped tariff, so check its end date and exit fees.
Frequently asked questions
What is the price cap from October 2026?
From 1 October to 31 December 2026, electricity is capped at an average 26.32p per kWh and 54.83p a day (no VAT), and gas at 7.97p per kWh and 29.68p a day including 5% VAT (7.59p and 28.27p a day without VAT).
Why is there no VAT on electricity?
There's no VAT on domestic electricity in Great Britain from 1 October 2026 to 30 June 2027 (HMRC VAT Notice 701/19, checked 2 Nov 2026). At the normal 5% the rate would be 27.64p.
When is the next price cap announced?
25 November 2026 for January to March 2027, then 23 February 2027 and 26 May 2027.
Does the price cap limit my bill?
No. It limits unit rates and standing charges on standard variable tariffs. Your bill still depends on how much you use.
Related guides
- January 2027 price cap forecast and EV charging
- EV tariff vs the price cap: break-even
- Economy 7 vs smart time-of-use tariffs
- Fixed vs variable energy tariffs: how to decide
- Standing charges explained
- Guernsey and Jersey electricity tariffs compared
- All home-energy calculators
Sources (checked 27 October 2026 unless stated)
- Ofgem: price cap 1 Oct–31 Dec 2026 (published 26 Aug 2026): rates, VAT treatment, announcement dates, weekend/off-peak note
- Ofgem typical consumption values (2,700 kWh electricity, 11,500 kWh gas): not re-checked today
- Annualised bill: our calculation