Changes to energy price cap

What is the energy price cap and how is it changing?

The energy price cap sets the maximum amount that suppliers can charge for each unit of gas and electricity and for standing charges. 

Ofgem, the energy industry regulator, has announced that from Thursday 1 October  2026, the price cap on gas and electricity prices is increasing by 4%. 

From Thursday 1 October 2026, the price of electricity is rising to 26.32p per kilowatt hour (kWh), up from the current 26.11p. Gas prices will rise to 7.97p per kWh, up from the current 7.33p.

Standing charges - a fixed daily charge that covers the cost of connecting to the supply - are changing too. The standing charge for gas is increasing from 29.04p to 29.68p for gas, but it is dropping slightly for electricity - from 57.19p to 54.83p for electricity. Standing charges vary by region.

These amounts include 5% VAT on gas. There is no VAT on electricity from 1 October 2026 to 31 March 2027.

If you’re on a fixed tariff,  you will not be affected by the increases in unit prices.

How much will a typical annual energy bill be?

A typical household paying by direct debit for gas and electricity can now expect to pay around £1,723 a year. This has increased by 4% since the last price cap period.

In July, Ofgem reduced its Typical Domestic Consumption Values (TDCV) – its assumption about the amount of energy that a typical household uses. Its new estimate assumes annual usage of 9,500 kWh of gas and 2,500 kWh of electricity.

What will the increase in the energy price cap mean for your energy bills?

It's important to remember that what you will pay depends on: 

• how much energy your household uses
• how you pay your bill
• the type of meter you have; and
• the tariff that you’re on. 

So, if you need to use more energy – because you have a large family, or you have a health condition that means you need to have a warmer home – your bills will be higher than Ofgem’s estimate of an annual bill.

How do you know if you're on the best tariff?

Check your energy bill to see if you’re on the best tariff for your situation. You may also wish to consider fixing your tariff. It’s often worthwhile to ‘shop around’ as you might get a better energy deal from a different supplier too. 

Read our guide about how to get the best deal for your energy, which includes information on how to understand your energy bill.

What are easy ways to save energy?

Not all energy-saving home improvements are expensive and time consuming. There’s lots of easy and inexpensive ways you can cut your energy use and save money today - discover easy ways to save energy. You can also read our tips on how to stay warm at home for less.

Could you be eligible for Warmer Homes Scotland?

If you’re struggling to keep on top of your energy bills and are worried about keeping warm at home this winter, you could be eligible for support from the Scottish Government’s Warmer Homes Scotland programme. More than 50,000 households have received help to install heating, insulation and more.

Read more about Warmer Homes Scotland.

Get help if you're worried about energy bills

If you live in Scotland and you’re worried about your energy bills, we’re here to help – call us on 0808 808 2282 or, if you’d rather speak to someone over email or WhatsApp, get in touch via our website contact form today.

Our friendly advisors are on hand to give you free, expert and impartial advice about ways you can reduce your bills and improve your home to make it more energy efficient. They can explore any funding available and offer specialist advice if you need additional support.

If you need help, don't delay - get in touch today. If you're struggling to pay your bills, help is available - find out where to turn for financial support.