Ofgem Price Cap: What Changes in October 2026 and What It Means for Your Bill
How the Ofgem energy price cap is reviewed each quarter, what's expected to change from October 2026, and how to work out the impact on a typical dual-fuel bill.
Quick answer
Every three months, Ofgem recalculates the maximum a supplier can charge per unit of gas and electricity, and per day in standing charges, on a standard variable (default) tariff. The October 2026 update follows the same pattern as previous quarters — driven mainly by wholesale energy costs over the relevant assessment window, alongside network costs, policy costs and supplier operating allowances — and will replace the July-September 2026 figures for anyone on a standard variable tariff.
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Energy bill calculatorWhat the cap actually controls
It's worth being precise about what the price cap does and doesn't do: it caps the unit rate (pence per kWh) and the daily standing charge that a supplier can charge on a default tariff — it does not cap the total bill itself. Ofgem's widely quoted "typical annual bill" figure (£1,641 for April-June 2026, for example) is an illustrative calculation based on a fixed assumed usage level (currently based on a medium-use household using 2,700 kWh of electricity and 11,500 kWh of gas a year), so any household using significantly more or less energy than that will see a different actual bill even under the exact same unit rates.
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Electricity cost calculatorWhy the cap doesn't apply to everyone
The cap only applies to standard variable/default tariffs — the rate a household falls onto automatically when a fixed deal ends, or if they've never switched. Anyone on a fixed-rate tariff is paying whatever rate they agreed when they signed up, which can sit above or below the current cap depending on wholesale price expectations at the time. This is why "the price cap has gone up/down" headlines don't automatically mean every household's bill changes by the same amount in October.
Working out the real impact
The most reliable way to estimate the effect of an October 2026 cap change on an actual household is to take the previous 12 months' usage in kWh (available from a recent bill, an online account, or a smart meter reading) and apply the new unit rates and standing charges directly, rather than relying on the "typical household" comparison, which can overstate or understate the real change depending on how a household's actual usage compares to the assumed average.
Bottom line
The October 2026 cap update is another routine quarterly recalculation rather than a one-off event — the headline "typical bill" number is a useful direction-of-travel indicator, but working out the real change to a specific household's bill means applying the new rates to actual usage, not the average.
Sources
- Ofgem: Energy price cap
- Ofgem: Understanding the energy price cap
Frequently asked questions
How often does Ofgem update the energy price cap?
Ofgem reviews and updates the default tariff price cap every three months — in January, April, July and October — based mainly on wholesale energy costs over the preceding assessment period, plus network, policy and operating costs.
What was the price cap for the April to June 2026 quarter?
The cap for a typical dual-fuel household paying by direct debit was set at £1,641 a year for the April-June 2026 quarter, with unit rates of 24.67p/kWh for electricity and 5.74p/kWh for gas, plus daily standing charges.
Is the price cap a fixed bill amount?
No — the cap sets a maximum unit rate and standing charge that suppliers can charge on standard variable tariffs; the 'typical' bill figure quoted by Ofgem is an illustrative example based on average usage, and actual bills vary with how much energy a household actually uses.
Does the price cap apply to fixed-rate deals?
No — the cap only applies to default/standard variable tariffs. Fixed-rate deals sit outside the cap and can be priced above or below the cap level depending on supplier pricing and wholesale market expectations at the time the fix is taken out.
How can I check what the October 2026 cap means for my own bill?
The most accurate way is to apply the new unit rates and standing charges to actual annual usage in kWh (found on a previous bill or smart meter reading), rather than relying on the 'typical household' figure, which assumes a specific average consumption level.
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