Energy price cap January 2027: what we know
What the current cap is (Oct–Dec 2026)
- £1,723 a year typical dual-fuel Direct Debit comparison figure (up 4% / about £60 from the previous period).
- Typical use Ofgem uses: 2,500 kWh electricity and 9,500 kWh gas a year.
- Average Direct Debit unit rates and standing charges (England, Scotland and Wales averages): electricity 26.32p/kWh and 54.83p/day; gas 7.97p/kWh and 29.68p/day.
- Electricity rates exclude VAT for 1 Oct 2026–31 Mar 2027; gas still includes 5% VAT.
January 2027: the date that matters
| by 25 Nov 2026 | Ofgem announces the cap for 1 Jan – 31 Mar 2027 |
| by 23 Feb 2027 | Announcement for 1 Apr – 30 Jun 2027 |
| by 26 May 2027 | Announcement for 1 Jul – 30 Sep 2027 |
Ofgem may publish earlier if needed. [source: Ofgem]
What to do before 25 November
- Check whether you are on a default (variable) tariff or a fixed deal – only default tariffs move with the cap.
- Submit a meter reading so your bill is based on real use, not an estimate.
- If you are thinking of fixing, wait for the 25 Nov announcement if you can, then compare on an Ofgem-accredited comparison site ↗ – forecasts before that date can be wrong.
- If you cannot pay, tell your supplier. They must help; Citizens Advice can also support you.
More bill-cutting tips (broadband and mobile too): Cut your bills. Every key money date: Key dates calendar.
FAQs
What is the energy price cap for October to December 2026?
£1,723 a year for a typical dual-fuel household paying by Direct Debit, based on Ofgem typical use. It is a comparison figure, not a fixed bill – your cost depends on how much you use, where you live, your meter and how you pay.
When will the January 2027 price cap be announced?
Ofgem says it will announce the cap for 1 January to 31 March 2027 by 25 November 2026. Numbers published before then are forecasts, not the official cap.
Does the price cap affect fixed tariffs?
No. If you are already on a fixed-rate tariff, the October–December 2026 cap change does not apply to you.
Is VAT still charged on electricity?
From 1 October 2026 to 31 March 2027 the government has removed VAT from electricity. Gas still has 5% VAT. Ofgem has built that into the published rates.
Figures checked 16 October 2026 against Ofgem. Official bodies can change dates and rates; always check the source links above.