UK household energy prices are set to rise by 4% for domestic consumers on standard variable tariffs starting October 1, 2026, the energy regulator Ofgem announced.
The price cap adjustment, which applies to England, Scotland and Wales, will remain in force through December 31, 2026. Ofgem reviews and resets the cap level every quarter, with the next update due no later than November 25, 2026, covering the period from January 1 to March 31, 2027.
Average rates for consumers paying by direct debit on standard variable tariffs will increase to 26.32 pence per kilowatt-hour for electricity, with a daily standing charge of 54.83 pence. Gas prices will average 7.97 pence per kilowatt-hour, with a daily standing charge of 29.68 pence.
The government has exempted electricity bills from value-added tax (VAT) from October 1, 2026, to March 31, 2027, meaning standard variable tariffs will not include the tax during this period. Gas bills will continue to be subject to a 5% VAT rate.
The price increase follows higher wholesale gas costs driven by the ongoing conflict in the Middle East. Despite the rise, current energy prices remain below the levels seen during the 2022 energy crisis, when the government set a £2,500 cap on bills.
The price cap applies to consumers on standard variable tariffs who pay via conventional credit, direct debit, pre-payment meters or Economy 7 meters. Fixed-tariff customers are not affected by the adjustment.
