ENERGY & MAINTENANCE

Ofgem’s next energy-price-cap period starts on 1 October. Use the change as a prompt to check your tariff and rates: the widely reported annual figure is an illustration, not the maximum your household can be billed.

For 1 October to 31 December 2026, Ofgem gives an annualised typical dual-fuel Direct Debit figure of £1,723, compared with £1,663 for July to September on the same consumption basis. It describes the increase as 4%, rounded. The comparison assumes 2,500kWh of electricity and 9,500kWh of gas a year. These are Great Britain figures covering England, Scotland and Wales. Ofgem's 26 August summary letter sets out the calculation.

The cap covers standard variable tariffs. It does not directly cap an agreed fixed tariff, heating oil or heat supplied through a heat network, and it does not apply in Northern Ireland. Check your tariff name and any fixed-term end date before assuming the October cap change will determine your price. Ofgem explains which tariffs it covers.

Your unit rate is the charge for each kilowatt-hour of energy used. The standing charge is a daily amount. Rates vary by region, payment method and meter arrangement, so the national illustration will not substitute for your supplier's notification.

Put the old and new notices beside each other. Check electricity and gas separately, including each standing charge and the date the new rates start. If you have more than one electricity rate, such as day and night prices, compare each one.

Ofgem's current guidance also reflects zero VAT on electricity from 1 October 2026 to 31 March 2027, with gas remaining at 5%. Compare VAT-inclusive amounts on a consistent basis so you do not add tax twice. The applicable rates and qualifications are on Ofgem's unit-rates page.

You may have seen a different July headline figure. Ofgem revised its typical-use assumptions from 1 July 2026, replacing 2,700kWh electricity and 11,500kWh gas with the lower values used above. That change in the illustration does not itself change a customer's energy use or rates. Its revised July letter explains the distinction.

Use your own consumption to understand the effect on your household. The £60 difference between the two annualised headline figures is not a forecast that your winter bill will rise by £60. Nor does the October cap fix prices for the following twelve months.

For each fuel, write down the new unit rate, standing charge and your consumption for the period you want to examine. An illustrative supply-cost calculation is: usage in kWh multiplied by the unit price in pounds, plus the number of days multiplied by the daily standing charge in pounds. Add the fuels together and account separately for credits, discounts or other bill adjustments.

Keep the same consumption and number of days when comparing old and new rates. Actual winter use may be different. If the supplier's calculation is unclear, ask it to explain the rates and readings used before drawing conclusions from the monthly payment alone.