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Making Sense of the Energy Price Cap

We’re here with simple, jargon-free updates to help you manage your household bills with complete confidence.

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The October - December 2026
Price Cap Explained

From 1st October to 31st December 2026, Ofgem set the price cap for a typical dual-fuel household paying by Direct Debit at £1,723 a year.
  • What changed? This is a 3.6% increase (around £60 extra a year, or roughly £5 a month) compared to the previous quarter.

  • Why did it change? The increase was mainly driven by global wholesale energy market shifts, along with necessary network upgrades and government warmth scheme costs.

What Does This Mean for Your Household?

If You're on a Variable Tariff

Your rates updated automatically on 1st October 2026 in line with the new cap. It's a great time to check your monthly Direct Debit to make sure it covers your winter heating needs seamlessly.

If You're on a Fixed Tariff

You can sit back and relax - your rates stay frozen until your current contract end date. If your plan is coming to an end soon, its worthing checking out tariffs so you lock in a great new rate for the colder months.

Submitting Meter Readings

If you don't have a smart meter, sending regular meter readings keeps your bills based on actual energy used - putting an end to estimated bills!

Easy Ways to Save on Your Energy Bills
  • Lock in price peace of mind: Take a look at EnergyCoop’s fixed-rate plans to protect your home against future price changes.

  • Simple energy tweaks: Draught-proofing doors, switching to LED bulbs, and turning down your main thermostat by just 1°C can add up to noticeable savings every single month.

What is the Energy Price Cap?

The Energy Price Cap is set by Ofgem. It puts a maximum cap on the unit rates and standing charges that energy companies can charge customers on standard variable tariffs.
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Good to know: The price cap isn't a cap on your total annual bill! It caps the rate you pay for each unit of energy you actually use. If you use less energy, your bill goes down; if you use more, it goes up.

Breaking Down Your Energy Costs

What You See on Your BillWhat It MeansSimple Breakdown
Unit RateThe price you pay for the exact amount of energy you use.Measured in kWh (kilowatt-hours) for gas and electricity.
Standing ChargeA fixed daily fee that keeps your home connected to the energy network.A small daily charge (in pence per day) regardless of how much energy you use.

Fixed vs. Variable Tariffs: Which is Right for You?

fixed tariff icon

Fixed Tariff

Your unit rates and standing charges stay locked in for a set period (usually 12 to 24 months). This shields you from surprise price hikes and gives you steady, predictable monthly bills.
Variable tariff icon

Standard Variable Tariff

Your unit rates shift every three months when Ofgem updates the price cap. The rates rise or fall influenced by the wider energy market.

Frequently Asked Questions

Is £1,723 the absolute maximum I will pay this year?

No. The £1,723 figure is an example based on a typical average UK household. The cap limits the rate per unit of energy, not your final bill amount. If your household uses more energy, your bill will be higher; if you use less, you’ll pay less!

When will the price cap change again?

Ofgem updates the cap every three months. The next cap period runs from 1st January to 31st March 2027, and Ofgem will announce those rates at the end of November.

Should I fix my rates or stay on a variable tariff?

If you prefer steady monthly payments and want to avoid potential winter price spikes, fixing your tariff is a fantastic option.

How can I submit a meter reading?

For EnergyCoop customers you can log your readings in seconds through your Octopus online account or mobile app. If you have a working smart meter, you don't need to lift a finger - it sends readings automatically!