The Ofgem energy price cap for 1 October to 31 December 2026 is £1,723 a year for a typical dual fuel household paying by direct debit, up 4 per cent or £60 on the current £1,663. The largest suppliers include Octopus Energy, British Gas, E.ON Next, EDF, OVO and ScottishPower. The cap limits unit rates, not your total bill.
TL;DR · LAST REVIEWED 30 AUGUST 2026
- The Ofgem price cap is £1,723 a year for a typical dual fuel home from 1 October 2026.
- That is up 4 per cent, or £60, on the current £1,663 cap (Ofgem).
- The cap limits unit rates and standing charges, not your total bill.
Major UK domestic energy suppliers and their status
| Supplier | Group or status | Published note |
| Octopus Energy | Independent | Largest UK domestic supplier; acquired Bulb and Shell Energy retail |
| British Gas | Centrica | Largest legacy supplier; Scottish Gas in Scotland |
| E.ON Next | E.ON | Absorbed the former Npower customer base |
| EDF | EDF | Also a major electricity generator in the UK |
| OVO Energy | OVO | Acquired the former SSE retail business |
| ScottishPower | Iberdrola | Focus on renewable generation |
Source: Company information, 2026
KEY FACTS
- The Ofgem price cap is £1,723 a year for a typical dual fuel home from 1 October 2026 (Ofgem).
- That is a 4 per cent rise, or £60, on the current £1,663 cap.
- Gas bills rise around 8 per cent; electricity stays broadly stable after the VAT cut to 0 per cent.
- Around 22 million households on default tariffs are protected by the cap (Ofgem).
- About 35 per cent of households, roughly 11 million, are on fixed tariffs and unaffected by the rise.
Ofgem price cap from 1 October 2026 by payment method
| Measure | Figure | Period |
| Typical dual fuel (direct debit) | £1,723 a year | 1 Oct to 31 Dec 2026 |
| Previous cap (direct debit) | £1,663 a year | 1 Jul to 30 Sep 2026 |
| Prepayment meter | £1,678 a year | 1 Oct to 31 Dec 2026 |
| Standard credit (on receipt of bill) | £1,861 a year | 1 Oct to 31 Dec 2026 |
| Households protected by the cap | around 22 million | Ofgem |
| VAT on domestic electricity | 0 per cent from 1 October | reduced from 5 per cent |
Source: Ofgem, announced 26 August 2026
The major suppliers
The named suppliers above cover most UK households. Octopus Energy is now the largest domestic supplier after acquiring Bulb and the Shell Energy retail business, British Gas remains the largest legacy supplier and part of Centrica, E.ON Next absorbed the former Npower base, and OVO took on the former SSE retail customers. EDF and ScottishPower complete the group of the largest suppliers. Under the price cap the standard variable tariffs of these suppliers are closely aligned, so the meaningful differences are fixed tariff pricing, service and smart tariff options.
What the price cap actually limits
Ofgem confirmed on 26 August 2026 that the cap for 1 October to 31 December 2026 is £1,723 a year for a typical dual fuel household paying by direct debit, up 4 per cent on the current £1,663. The cap limits the maximum unit rates and standing charges a supplier can charge on a default tariff, not the total bill: a household using more than the typical amount pays more. Prepayment sits at £1,678 and standard credit at £1,861 for the same period.
Why the cap is rising
Ofgem attributes the increase to higher wholesale gas prices. Gas bills rise around 8 per cent from October, while electricity stays broadly stable because the Government removed the 5 per cent VAT on domestic electricity from the same date. Households that do not use gas therefore see an increase of less than 1 per cent. Around 35 per cent of households, roughly 11 million, are on fixed tariffs and are not affected by the cap change, though the VAT cut still applies to them.
RELATED GUIDES
DISCLAIMER
This article is editorial information, not financial advice. Kael Tripton Ltd is not authorised or regulated by the Financial Conduct Authority. Figures were correct at the last review date shown above; verify current rates and rules with the primary sources listed below before acting.
Frequently asked questions
What is the energy price cap from October 2026
The Ofgem price cap is £1,723 a year for a typical dual fuel household paying by direct debit for 1 October to 31 December 2026, up 4 per cent on the current £1,663.
Does the price cap limit my total bill
No. The cap limits the maximum unit rates and standing charges on a default tariff. If you use more energy than the typical household, you pay more than the headline figure.
Who is the largest energy supplier in the UK
Octopus Energy is the largest domestic supplier after acquiring Bulb and Shell Energy retail, ahead of British Gas, the largest legacy supplier.
Why is the cap going up
Ofgem attributes the rise to higher wholesale gas prices. Gas bills rise around 8 per cent, while electricity stays broadly stable after the VAT cut to 0 per cent.
Should I fix my energy tariff
Around 35 per cent of households are on fixed tariffs. Whether a fix saves money depends on how its rate compares with the cap over the fixed term, which is a personal calculation rather than a general rule.
SOURCES
- Ofgem: Energy price cap will rise 4 per cent from October 2026 – accessed 30 August 2026
- GOV.UK: VAT on domestic electricity – accessed 30 August 2026
