​Energy Prices Are Rising on 1 October. What You Need to Know

From 1 October 2026, Ofgem’s energy price cap will increase by 4%, meaning the typical household paying by Direct Debit for gas and electricity will see the annualised price cap rise from £1,663 to £1,723.

However, the headline figure doesn't tell the whole story. The Government is also removing VAT from household electricity bills from 1 October, which will help offset some of the increase. While gas prices are rising, electricity prices are broadly stable.

So, what does this mean for your energy bill – and what can you do to take back control?

The energy price cap sets a maximum unit rate and standing charge that suppliers can charge customers on standard variable or default tariffs. Ofgem reviews the cap every three months.

From 1 October to 31 December 2026, the average rates for a household paying by Direct Debit will be:

These are average rates across England, Scotland and Wales. The rates you actually pay will depend on factors including where you live, how you pay and the type of meter you have.

The biggest change is to gas, with the average unit rate increasing from 7.33p to 7.97p per kWh.

For electricity, the Government's decision to remove VAT from domestic electricity bills from 1 October will help offset higher costs elsewhere. The VAT reduction will apply until 31 March 2027.

The price cap is influenced by the cost of supplying energy, including wholesale energy prices.

For this latest cap, higher wholesale gas prices have been a key factor behind the increase. While energy prices remain well below the highs seen during the energy crisis, changes in the wholesale market continue to have an impact on household bills.

The good news is that the price cap isn't the only option available to customers.

If you're on a standard variable tariff, the price cap limits the maximum unit rates and standing charges you can be charged.

But remember, the price cap isn't a cap on your total bill. What you pay depends on how much energy you use.

It's therefore worth checking your current tariff and seeing whether there's another option that could work better for your household.

A fixed tariff could give you more certainty over what you pay for your energy for a set period, while some smart tariffs offer different prices depending on when you use electricity.

If you have a smart meter, you may have access to tariffs and schemes that offer cheaper electricity or rewards for using energy at certain times.

Shifting some energy use – such as running your washing machine or dishwasher, or charging an electric vehicle – to cheaper periods could help reduce your costs, depending on the tariff you're on.

An EnergyCoop customer? Make the most of your smart meter

If you're an EnergyCoop customer with a smart meter, you can also access Octopus Energy's Saving Sessions and Weekend Happy Hour.

Saving Sessions give you the opportunity to earn rewards by reducing your electricity use at specific times when demand on the grid is high. Weekend Happy Hour offers periods of cheaper electricity at selected times over the weekend.

They're simple ways to make your energy use work a little harder for you – and can be particularly useful if you have flexibility over when you run appliances, charge your car or use other high-energy devices.

The latest price cap is another reminder that household energy costs can be affected by factors outside our control.

At EnergyCoop, we believe energy can do more than simply power our homes. Our Community Power Tariff supports renewable energy projects across the UK, helping communities benefit from the transition to cleaner energy.

Choosing a community-focused energy tariff is one way to make your energy work harder for communities while powering your home.

With the colder months approaching, October is a good time to take a fresh look at your energy tariff and make sure it works for you.

The energy market can feel complicated, but you don't have to simply accept higher bills. Check your tariff, understand your options and find the right deal for your household.

And if you'd like your energy to do more than simply power your home, find out more about EnergyCoop's Community Power Tariff and how you can support renewable energy projects in communities across the UK.