The energy price cap is £1,723/yr, October to December 2026
Confirmed by Ofgem on 26 August 2026: 26.32p/kWh electricity, 7.97p/kWh gas. Suppliers now forecast the January 2027 cap rising 21.8% to 23.9% - Ofgem has not confirmed a figure.
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The current cap, October to December 2026
| Electricity unit rate | Electricity standing charge | Gas unit rate | Gas standing charge | Typical bill | |
|---|---|---|---|---|---|
October to December 2026 | 26.32p/kWh | 54.83p/day | 7.97p/kWh | 29.68p/day | £1,723 |
July to September 2026 | 26.11p/kWh | 57.19p/day | 7.33p/kWh | 29.04p/day | £1,663 |
Typical bill: for a household on Ofgem's typical consumption values, paying by Direct Debit. Change versus the previous quarter: +4% headline (+3.6% actual, +£60). Ofgem states there is no VAT on electricity for this quarter (0% from 1 October 2026 to 31 March 2027), so these figures are not directly comparable to earlier VAT-inclusive quarters on a like-for-like basis. Source: Ofgem, confirmed 26 August 2026.
What happens in January 2027
Ofgem has not announced the January to March 2027 cap. Every figure below is a forecast from a supplier or an independent analyst, dated to when we last checked it, never presented as the cap itself.
| Source | Forecast typical bill | Change vs current cap | As of |
|---|---|---|---|
British Gas | £2,135 | +23.9% | 21 September 2026 |
E.ON Next | £2,118 | +22.9% | 23 September 2026 |
EDF | £2,098 | +21.8% | 22 September 2026 |
Cornwall Insight | £1,872 | +9% | 23 September 2026 |
All four rows above are third-party forecasts, not Ofgem's confirmed cap, and are labelled and dated individually rather than averaged into one headline number. EDF, British Gas and E.ON Next all revised their figures down slightly between mid- and late September 2026; Cornwall Insight's figure, last updated 26 August, is unchanged and remains the outlier at roughly half the percentage rise the three suppliers currently show.
These are whole dual-fuel bill forecasts and the rise is gas-led (gas is just over half of a typical bill); none of the four sources above has published a separate electricity-only figure for January, so this page does not invent one. Read the fuller explainer on why forecasts diverge or what the January rise means specifically for solar and battery owners.
Ofgem's own announcement for the January to March 2027 cap is expected around 25 November 2026. Widely reported as 25 November 2026 across secondary coverage and consistent with Ofgem's normal nine-to-ten-week-ahead cadence, but Ofgem's own price cap page does not commit to that exact date. Treated here as an expected date, not a confirmed one.
What the cap does, and does not, cap
What it caps
- The maximum unit rate (p/kWh) a standard variable-tariff supplier can charge for each unit of gas and electricity
- The maximum daily standing charge a supplier can charge
- Applies per unit, so it caps the RATE, not the total bill - a home using more energy still pays more
What it does not cap
- It is not a cap on your total bill: the widely quoted 'typical bill' figure (£1,723) assumes Ofgem's typical consumption values (2,700 kWh electricity, 11,500 kWh gas a year); a household using more pays more even at the same capped rate
- It does not apply to fixed-rate deals, which suppliers can price above or below the cap
- It does not cover standing-charge-exempt or non-domestic tariffs
- It does not set export rates (the Smart Export Guarantee) - see the export rates hub for those
What 26.32p/kWh means for payback
| Setup | System, installed | Total year one benefit | Simple payback |
|---|---|---|---|
Solar only | £6,360 | £840 | 7.6 yrs |
Solar + Duracell Dura16 | £10,810 | £1,134 | 9.5 yrs |
Standard 12 panel, 6.36 kWp system, national mean yield, 2,700 kWh typical use, the same model every county page runs, at today's confirmed 26.32p/kWh cap rate. A battery's off-peak arbitrage spread against this cap is currently around 16.9p per shifted unit before losses. If the cap rises, every avoided or shifted unit becomes worth more and payback shortens; if it falls, the reverse. We do not apply the January whole-bill forecasts above to this table, because no forecaster has published the electricity-only component they imply. The same system, ranked county by county on its own sunlight: solar payback in every county.
Every installation is carried out by our teams, who hold:
Key dates
28 October 2026
Autumn Budget 2026
Confirmed by Chancellor John Healey. No home-energy measures beyond the already-announced VAT cut are confirmed as of this check.
31 March 2027
0% VAT on domestic electricity ends
The temporary 0% VAT rate on domestic electricity (cut from 5%) runs 1 October 2026 to 31 March 2027, Great Britain only.
31 March 2027
0% VAT on solar, battery and heat pump installation ends
The zero rate on installing energy-saving materials (equipment plus labour) reverts to 5% from 1 April 2027 under current legislation; no extension has been announced.
25 November 2026
Ofgem January cap announcement expected
Expected, per secondary coverage; not pinned to an exact date on Ofgem's own site.
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We confirm the live numbers for your postcode and run your real payback, not an illustrative example.
Price cap questions, answered
What is the energy price cap for October to December 2026?
£1,723 a year for a typical dual-fuel household paying by Direct Debit, confirmed by Ofgem on 26 August 2026. The unit rates are 26.32p/kWh electricity (standing charge 54.83p/day) and 7.97p/kWh gas (standing charge 29.68p/day).
Is the January 2027 cap confirmed yet?
No. Ofgem has not announced the January to March 2027 cap; that is expected around 25 November 2026, though Ofgem's own page does not commit to that exact date. Every January figure on this page is a supplier or analyst forecast, not the cap, and is labelled and dated as one.
Why do the January forecasts disagree so much?
They are gas-led forecasts for the whole dual-fuel bill, from different organisations using different models and different publish dates. EDF, British Gas and E.ON Next currently sit close together; Cornwall Insight's last published figure, from 23 September 2026, remains the lowest and has not moved since.
Does the price cap limit my total bill?
No. It caps the unit rate and standing charge a standard variable tariff can charge, not your total spend - a household using more energy still pays more even at the capped rate. It also does not apply to fixed-rate deals, which can sit above or below the cap.
What does a rising cap mean for solar and battery payback?
Every unit your panels generate and you use directly, rather than import, is worth the current cap rate - 26.32p/kWh today. If the cap rises, that avoided unit is worth more, which shortens payback; the reverse is also true if it falls. We do not convert the January whole-bill forecasts into an electricity-only rate, because none of the forecasters have published one - see the guide links below for the fuller discussion.
When was this page last checked?
The confirmed cap was verified against Ofgem's own figures, and the four forecasts were re-checked directly against each source, on 25 September 2026.
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