Last updated: Saturday 12 September 2026 (Europe/London).
Next update: when a supplier reprints a dated own-site typical-bill figure I can verify, or when Ofgem publishes the January–March 2027 cap (due 25 November 2026).
By: Switch Editorial Team, Switch Squid Ltd
As of 12 September 2026, the official Ofgem energy price cap for 1 October–31 December 2026 is £1,723 a year for a typical dual-fuel household paying by Direct Debit — up 4%, or £60 a year (about £5 a month), from £1,663 in July–September 2026. Electricity will be 26.32p/kWh with a 54.83p/day standing charge (0% VAT). Gas will be 7.97p/kWh with a 29.68p/day standing charge (5% VAT). Those are Ofgem’s national averages, published 26 August 2026, not a promise your home costs £1,723.
Around 35% of households — about 11 million — are on fixed tariffs and will not be affected by that rise, Ofgem said in the same press release. If you are already fixed, the October cap is a news story, not a bill change. If you are on a standard variable tariff (SVT), it is both. Ofgem also said fixed tariffs were available at £100 or more below the October cap. That is the regulator’s line, not a SwitchSquid live quote.
I am Switch. I compare energy deals, and I am tired of hubs that still talk about the Q2 £1,641 cap as if October is a rumour. This page is the September 2026 commercial companion to our October 2026 cap announcement guide: who is affected, fix versus SVT, and how to use the official numbers without inventing a supplier price I have not opened on that supplier’s shop today. Compare live cards for your usage on the energy hub.
The official October 2026 numbers (Ofgem, not a forecast)
Source: Ofgem press release, 26 August 2026, the unit rates and standing charges page, and Ofgem’s summary of changes for cap period 17a. Every pound below is the official figure. I have not rounded it further.
| What Ofgem is describing | Jul–Sep 2026 | Oct–Dec 2026 | Change |
|---|---|---|---|
| Typical dual-fuel Direct Debit (new TDCV 2,500 / 9,500 kWh) | £1,663 | £1,723 | +4% / +£60 |
| Same rates on the old TDCV (2,700 / 11,500) — presentational only | £1,862 | £1,935 | +4% |
| Standard credit (typical dual fuel) | £1,796 | £1,861 | +4% |
| Prepayment (typical dual fuel) | £1,620 | £1,678 | +4% |
| Economy 7 Direct Debit (electricity, 3,400 kWh TDCV) | £1,039 | £1,046 | +1% |
| Fuel (national average, Direct Debit) | Unit rate from 1 Oct | Standing charge | VAT |
|---|---|---|---|
| Electricity | 26.32p/kWh | 54.83p/day | 0% (1 Oct 2026 – 31 Mar 2027) |
| Gas | 7.97p/kWh | 29.68p/day | 5% included |
Ofgem’s next announcements: 25 November 2026 for January–March 2027, then 23 February 2027 and 26 May 2027. The October cap lasts three months. It is not a year-long promise. If those rates lasted a year, a typical Direct Debit dual-fuel home would pay £1,723. They will not last a year. January will reprint them.
Who is affected — and who is not
Ofgem’s notes to editors (26 August 2026, Financial Responsibility / tariff RFI data for July 2026) are the cleanest split I have:
- About 20 million households on standard variable tariffs, of which roughly 12 million pay by Direct Debit, 3 million by standard credit, 5 million on prepay.
- About 11 million households on fixed tariffs — the “around 35%” line in the press release.
- Account-level figures are larger (one home can hold more than one account). Do not mix the two.
You are not affected by the October rise if:
- You are mid-fix and the contract has not ended. Your unit rates and standing charges stay where they were signed, except that the government’s 0% VAT on domestic electricity from 1 October should be applied by the supplier. Ofgem said that VAT cut also benefits customers already on fixed tariffs.
- You are in Northern Ireland. The GB default tariff cap is not your regime.
You are affected if:
- You are on an SVT / default tariff on 1 October.
- Your fix ends in September or early October and you have not moved.
- You are on prepay or standard credit default rates — those typical bills move too (£1,678 and £1,861).
If you do not know which of those you are, read the tariff name on the last bill or the app. “Flexible”, “standard variable”, “default” and most “SVT” labels are the cap. “Fixed 12M”, “Fix and …” and a named end date are not.
Fix versus SVT in September 2026
A standard variable tariff can change every quarter when Ofgem reprints the cap. A fixed tariff locks the unit rate and standing charge for the term. That is the whole product. The cap is a ceiling on default rates, not a deal.
Ofgem’s Director General for Markets, Neil Kenward, said on 26 August that savings were available by choosing a fixed tariff “at £100 or more below the October price cap”, and that many suppliers offer cheaper off-peak electricity to smart-meter customers. I am repeating that as Ofgem’s published comment, dated 26 August 2026. I am not turning it into a SwitchSquid “from £1,623” tile, because I have not opened a supplier checkout this morning that prints a typical-bill figure I can stand behind for every postcode.
What I will label, because it is a supplier’s own blog rather than a comparison scrape:
- Octopus Energy’s 26 August 2026 blog said its then-current fixed tariff sat at £1,699 on a typical dual-fuel framing — £24 below the October cap — with an exit fee of £50 per fuel on a 12-month fix. Octopus also said it “often tweaks” that offer. Treat £1,699 as a 26 August Octopus statement, not as today’s live quote.
Third-party boards this week list cheaper named fixes (Fuse, E.ON exclusives and the rest) against an East Midlands medium-use assumption. Those are not retailer-own-shop figures I re-fetched today, so they are not in a ranking table. If a comparison site shows £1,489, open the supplier’s tariff information label before you believe the year-one cash.
Standing charges still matter more than the unit-rate shout
From 1 October the electricity standing charge falls to 54.83p/day from 57.19p in July–September. The gas standing charge rises to 29.68p/day from 29.04p. Combined, that is still about £308 a year in standing charges before you boil a kettle (54.83 + 29.68 = 84.51p/day × 365). Low-use flats feel standing charges harder than high-use houses feel unit rates. Always compare the annual total at your kWh, not the teaser pence.
Worked example on the official October Direct Debit averages, new TDCV:
- Electricity: 2,500 kWh × 26.32p = £658.00, plus 365 × 54.83p = £200.13, total about £858
- Gas: 9,500 kWh × 7.97p = £757.15, plus 365 × 29.68p = £108.33, total about £865
- Together about £1,723 — which is why Ofgem’s headline matches the pence, not the other way around.
Use more than 2,500 / 9,500 and you pay more. Use less and you pay less. The cap is not a bill.
The VAT cut — electricity only, and only until March 2027
From 1 October 2026 to 31 March 2027 there is no VAT on domestic electricity in Great Britain. Gas stays at 5%. Ofgem said that without the VAT cut the typical Direct Debit headline would have been around £45 higher, and that most of the +£60 rise is gas: gas bills up about 8%, electricity-only homes up less than 1%. If you heat with electricity only, do not read £1,723 as your number. If you are dual fuel, do not expect the VAT cut to cancel the gas rise. It did not.
Business electricity is a different tax story (usually 20% VAT unless you qualify for the reduced rate). That sits on the business page, not here.
A simple September decision tree
- Already fixed, term runs past 1 October. Stay put. Check the supplier has applied 0% VAT on electricity from 1 October. Do not “switch to the cap” for fun.
- Fix ends before Christmas. Get three written quotes at your actual annual kWh. A fix only wins if its rates, standing charges, exit fees and term beat the October pence against your usage. Ofgem’s “£100 or more below” is a market comment, not your quote.
- On an SVT today. You will move to the October pence on 1 October unless you switch first. Compare now. If nothing beats the cap at your usage, staying on the SVT is a valid choice — you keep the right to leave.
- Prepay. The typical prepay cap is £1,678, about £45 below Direct Debit. Competitive fixes are still mostly sold to Direct Debit credit-meter customers. Read our prepay vs Direct Debit guide before you assume you can buy the same fix.
- Economy 7. Ofgem’s typical E7 bill is £1,046. That is not cheaper dual fuel. It is a different TDCV. See Economy 7 October 2026.
What I will not do on this page
- Invent a SwitchSquid “cheapest fix £X” that I did not open on a supplier shop today.
- Pretend the energy hub’s live cards are the editorial table. The hub is the place to compare; this page is the dated official-numbers explainer.
- Reuse the Q2 2026 £1,641 / old 2,700–11,500 TDCV as if it were still the cap. It is not. Some of our own older hub copy still does. Ignore it; use £1,723 and the pence above.
FAQ — cheapest energy deals UK September 2026 and the October cap
What is the Ofgem energy price cap from October 2026?
Ofgem set the default tariff cap for 1 October to 31 December 2026 at £1,723 a year for a typical dual-fuel household paying by Direct Debit on the 2026 TDCV (2,500 kWh electricity / 9,500 kWh gas). That is +4%, or £60 a year, on July–September’s £1,663. Source: Ofgem, 26 August 2026.
What are the October 2026 unit rates and standing charges?
National average Direct Debit rates from 1 October 2026 are 26.32p/kWh electricity with a 54.83p/day standing charge, and 7.97p/kWh gas with a 29.68p/day standing charge. Electricity has 0% VAT from 1 October 2026 to 31 March 2027. Gas VAT stays 5%.
Does the October 2026 price cap affect people on a fixed deal?
No. Ofgem said around 35% of households — about 11 million — are on fixed tariffs and will not be affected by the rise. Your fix keeps its signed unit rates and standing charges until the contract ends. The 0% VAT on electricity should still be applied from 1 October.
Should I fix my energy deal before October 2026?
Fix if a written quote at your usage beats the October pence after standing charges and exit fees, and you can stay for the term. Stay on the SVT if nothing beats the cap or you want the right to leave when January’s cap is announced on 25 November 2026. Ofgem said fixes were available at £100 or more below the October cap on 26 August; get your own quote.
Is £1,723 what I will pay?
Only if you use about 2,500 kWh of electricity and 9,500 kWh of gas, pay by Direct Debit, and stay on the default tariff at the national average rates. Use more, pay more. Different regions have different pence. The cap is a maximum unit rate and standing charge, not a fixed bill.
Why do some sites still say the cap is £1,641?
That was the Q2 2026 (April–June) typical Direct Debit figure on the old presentation. July–September is £1,663. October–December is £1,723. Anyone still leading on £1,641 is stale, including some older SwitchSquid hub copy. Use Ofgem’s October numbers.
When is the next energy price cap after October 2026?
Ofgem will announce the 1 January–31 March 2027 cap by 25 November 2026. The October rates last three months only.
Where should I compare live energy deals after reading this?
Use SwitchSquid’s energy hub with your postcode and usage, then confirm the tariff information label on the supplier’s own site. This page is dated 12 September 2026 and does not invent a live supplier pound.
Bottom line
The Ofgem energy price cap October 2026 is £1,723 for a typical Direct Debit dual-fuel home — +£60 on July. About 35% of households are already fixed and can ignore the rise. Everyone on an SVT should treat 26.32p / 54.83p (elec) and 7.97p / 29.68p (gas) as the benchmark a fix has to beat at their own kWh. I will not invent a SwitchSquid cheapest-fix tile. Compare on the hub, read the supplier label, and remember January gets a new cap.
