Millions of UK households are paying £60 more from October. Here's what it means and how to beat it.
SUMMARY
- Price cap: £1,723/year from 1 Oct - 31 Dec 2026 (was £1,663) for typical dual-fuel direct debit
- Rise = +4% (£5/month) due to wholesale gas, Middle East conflict
- Forecast: Cornwall Insight £1,999 for Jan-Mar 2027; EDF/Bloomberg warns £2,150+
- Government: Electricity VAT cut saves ~£45 but doesn't offset full rise
- Action: Check fixed tariffs now - many 12-month fixes are £80-£120 below the cap
What Just Changed?
Ofgem confirmed 26 Aug 2026 the Q4 cap is £1,723. 22M households affected.
Why Bills Are Rising Again - wholesale gas, LNG competition.
Forecast Jan 2027 - Cornwall £1,999, EDF £2,165, Bloomberg £2,150 scenario.
Fixed 12-month: locked price, exit fee £0-£75, often £80-150 below cap now, best for certainty
Variable: follows Ofgem, no exit fee, risky if Jan jumps
Verdict: If fixed at £1,600 or less + no exit fee, fix.
5 Ways to Lower Bills
FREQUENTLY ASKED QUESTIONS
Q: What is the energy price cap in October 2026?
A: £1,723 per year for typical dual-fuel direct debit, 1 Oct - 31 Dec 2026.
Q: Why is price cap rising?
A: Higher wholesale gas due to LNG demand and geopolitical risk.
Q: Should I fix now?
A: If you find 12-month fix at £1,600 or less with low/no exit fee, fixing now saves £80-150 vs cap and protects vs £1,999+ forecast Jan 2027.
Q: What will cap be Jan 2027?
A: Cornwall Insight forecasts £1,999, some scenarios £2,150. Final Ofgem figure late Nov 2026.
Don't pay £1,999 in January.
Check if you can fix for less today.
We compare 20+ suppliers — including exclusive fixes not on Ofgem’s cap tracker. Free, impartial, Ofgem-accredited comparison via EnergyDealUK.
Disclaimer & Methodology
EnergyDealUK is a comparison service, not an energy supplier. The price cap figures (£1,723 from 1 Oct – 31 Dec 2026, £1,663 prior period) are for a typical dual-fuel household paying by direct debit, using 2,700 kWh electricity and 11,500 kWh gas annually. Your bill depends on actual usage, region, meter type and payment method.
Forecasts: Cornwall Insight £1,999 (30 Sep 2026 release), EDF/Bloomberg £2,150+ scenario based on continued LNG volatility and cold-weather demand. EnergyDealUK estimates are indicative and not financial advice. Tariff examples checked 1–2 Oct 2026 and subject to change. Always read supplier Ts&Cs before switching.
VAT relief: The Government’s electricity VAT reduction remains included in Ofgem’s cap calculation at time of writing. Wholesale prices and policy may change. If you are in debt or have a prepayment meter, speak to your supplier or Citizens Advice for support.
© 2026 EnergyDealUK • Independent guide. Not affiliated with Ofgem, DESNZ or any supplier.