Energy Price Cap

From October 1 2026 the energy price cap will put average energy costs at £1,723 per year for a typical household. This is a 4% increase on the current average of £1,663 a year.

It’s important to know that the £1,723 figure doesn’t truly reflect just how expensive energy is at the moment. You’ll get a better idea of the increase by looking at how much a single unit of gas or electricity will cost compared to now (see below).

For example, the cost of a unit of gas will go up from 7.33p to 7.97p, an increase of 8.7%. The cost of a unit of electricity will also increase from 26.11p to 26.32p.

What is the energy price cap?

The price cap limits the cost of a unit of gas or electricity. It also limits the daily standing charge. Energy suppliers can’t charge you more than these limits.

Ofgem, the industry regulator, sets the price cap. They review it every three months.

What are the current standing charges and unit rates?

From 1 July 2026 – 30 September 2026 the average prices are £1,862 per year for a typical household – an increase of 13% on the previous period:

However, the actual standing charges and unit rates depend on:

• Where you live in the UK
• How you pay for your energy
• What type of meter you have

What will the rates be from October 2026?

From 1 October 2026 – 31 December 2026, the price cap will increase to £1,723 per year for a typical household. The unit prices will be as follows:

Does the energy price cap apply to me?

The price cap applies to you if you’re on a variable tariff. These are also called ‘default’ or ‘standard’ tariffs. Your energy bill or online account should show you if you’re on this type of tariff.

If you’re on a fixed tariff, then the price cap doesn’t apply to you. You’ll pay the unit rate and standing charge that you signed up to. This might be less than the rates set by the cap, or it might be more.

Price Cap rise: advice and support

There are a number of things you can do to protect yourself against the new Price Cap.

Contact your energy supplier

You can ask your supplier to:

• check if they have a cheaper tariff or if changing your payment method could save you money
• check if you’re entitled to any support, such as a debt relief fund
• help you come up with an affordable way to pay your energy debt and/or ongoing costs

Our Speaking to your supplier advice guide offers further help.

If you’re struggling with a complicated billing or energy debt issue, you can contact our free Affordable Warmth Service team.

Find a fixed rate tariff

The Price Cap doesn’t apply to fixed rate tariffs. This means you might be able to find a tariff which offers cheaper unit rates for gas and electricity.

You can find out more about fixed rate tariffs in our Switching Energy Supplier guide.

Check for grants and schemes

You might be able to get help with your energy bills or upgrading your home energy efficiency.

Check if you can be added to the Priority Services Register

Lots of people are eligible for the Priority Services Register. It offers several types of support, including extra protections for vulnerable customers.

Consider insulation and draught-proofing

Insulation and draught-proofing help keep heat in your home. This should mean you don’t need to run your heating as much to stay warm.

Draught-proofing is usually cheap to do. Some types of insulation (like loft insulation) also cost relatively little.

Explore renewable tech

You might be in a position to think about generating your own energy. Renewable tech like solar panels offers some protection against volatile electricity prices.

Apply for the Emergency Heating Oil scheme

If you use oil or LPG for home heating, you can apply for £300 through the Emergency Heating Oil scheme. This scheme runs to the end of September.

Get free advice and support

Speak to Home Energy Scotland for advice on saving energy and staying warm at home.

If you’re struggling with fuel debt or energy issues, freephone our Affordable Warmth Service team on 0800 870 8800