Energy price cap October 2026: Ofgem confirms 4% increase

Why is the price cap going up?

Ofgem says the price cap is going up because of continued pressure on oil and gas supplies as a result of the Middle East conflict.

Richard Neudegg, director of regulation at Uswitch, said: “This is going to be another difficult winter. For price cap customers, gas costs will be almost 27% higher than the same period last year, with the increase hitting just as the heating is due to go on.

“The Middle East conflict continues to impact wholesale gas prices, and ongoing supply challenges are set to hammer household bills as winter demand looms.

“Over half of households say they are already worried about paying for heating this winter. And now, those on standard tariffs may face a double blow on bills, with suppliers already pointing to another rise in January.

“The government’s electricity VAT cut, on top of the earlier removal of certain levies on bills, has meant this cap level isn’t as high as it might have been. But these haven’t been enough to hold off price cap hikes.

“While households may feel powerless, there is an escape route. The best current fixed deals will save you money straight away, let you avoid this increase, and protect you from future price shocks in January.

“With January's potential rise already looming, fixing before October is the only way to dodge a double blow to your energy bill.”

What should customers do?

If you’re on a standard variable tariff, you are affected by the price cap and your bills will go up in October. To avoid this happening, you should switch to a fixed deal. There are fixed deals currently on the market that save more than £100 against the current price cap of £1,663, so they’ll save even more when the cap goes up. Additionally, by taking a fixed deal, you lock in lower rates for the duration of the contract, which could be vital for keeping bills down considering the cap is expected to stay high or even increase in 2027. Click on the button below to run an energy comparison and see what’s currently available.

If you’re on a fixed deal already, you won’t be affected by the price cap until the deal ends. You should look at fixing again when you enter the final 49 days of your contract so you don’t get rolled onto a standard variable tariff.