Energy price cap by region October 2026: what £1,723 means where you live

Last updated: Thursday 8 October 2026 (Europe/London).
Next update: when Ofgem publishes the regional rates for the January to March 2027 price cap.
By: Switch Editorial Team, Switch Squid Ltd

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As of 8 October 2026, the £1,723 Ofgem price cap is a Great Britain average: at typical use, a dual-fuel home paying by Direct Debit pays about £1,672 a year in the East Midlands but about £1,805 in Merseyside and Northern Wales, a gap of roughly £133. Most of that difference comes from electricity standing charges, which run from 42.92p a day in London to 67.66p a day in Merseyside and Northern Wales. SwitchSquid sets out every region’s capped rates and yearly cost below, so you can judge a fixed deal against the price you actually pay; we may earn a commission if you buy through our links.

Sources: Ofgem — price cap unit rates and standing charges by region, Ofgem — energy price cap, Cornwall Insight — January forecast and Uswitch — supplier cap predictions.

Why the price cap is different in each region

Ofgem does not set one price for everyone. It sets a maximum unit rate and a maximum daily standing charge for each of the 14 electricity distribution regions in England, Scotland and Wales, and for each way of paying: Direct Debit, standard credit and prepayment. The headline £1,723 figure for 1 October to 31 December 2026 is the average for a typical dual-fuel household paying by Direct Debit, based on 2,500 kWh of electricity and 9,500 kWh of gas a year.

Ofgem says standing charges differ by area because of how many people live in each region, how much energy is used there on average, how much energy suppliers need to buy, and the cost of building and improving the local network. Those network costs are the main reason electricity standing charges vary so much. Gas standing charges, by contrast, sit in a narrow band between 29.16p and 30.20p a day.

The rates are a cap on each unit and each day, not on your total bill. If you use more energy than the typical household, you pay more; if you use less, you pay less. What changes with your region is the price of every kilowatt hour and the fixed daily charge you pay before you use anything.

Energy price cap by region: October to December 2026 (checked 8 October 2026)

The table lists Ofgem’s capped rates for Direct Debit customers on single-rate electricity, sorted from the cheapest region to the most expensive at typical use. Yearly figures are our own arithmetic at Ofgem’s typical usage of 2,500 kWh of electricity and 9,500 kWh of gas. Gas prices include 5% VAT; there is no VAT on electricity from 1 October 2026 to 31 March 2027.

Region	Electricity unit rate	Electricity standing charge	Gas unit rate	Gas standing charge	Typical yearly bill
East Midlands	25.36p per kWh	51.45p a day	7.82p per kWh	29.41p a day	£1,672.04
North Western England	26.49p per kWh	45.68p a day	7.86p per kWh	29.81p a day	£1,684.49
London	26.60p per kWh	42.92p a day	8.15p per kWh	30.20p a day	£1,706.14
West Midlands	25.60p per kWh	57.23p a day	7.90p per kWh	29.71p a day	£1,707.83
Eastern England	26.61p per kWh	51.84p a day	7.91p per kWh	29.34p a day	£1,713.01
Northern Scotland	26.35p per kWh	55.14p a day	7.87p per kWh	29.87p a day	£1,716.69
Southern England	26.47p per kWh	47.81p a day	8.17p per kWh	29.16p a day	£1,718.84
North Eastern England	25.46p per kWh	61.58p a day	7.92p per kWh	29.79p a day	£1,722.40
Yorkshire	25.60p per kWh	61.67p a day	7.90p per kWh	29.77p a day	£1,724.26
Southern Scotland	26.11p per kWh	61.41p a day	7.87p per kWh	29.89p a day	£1,733.64
South Eastern England	26.88p per kWh	52.32p a day	8.05p per kWh	29.26p a day	£1,734.52
Southern Wales	26.55p per kWh	55.41p a day	8.09p per kWh	29.96p a day	£1,743.90
South Western England	26.58p per kWh	55.58p a day	8.12p per kWh	29.31p a day	£1,745.75
Merseyside and Northern Wales	27.86p per kWh	67.66p a day	7.91p per kWh	30.08p a day	£1,804.70
Great Britain average	26.32p per kWh	54.83p a day	7.97p per kWh	29.68p a day	£1,723.61

Ofgem rounds the headline to £1,723. Your own bill will differ if your usage is higher or lower than typical, if you have a multi-rate meter such as Economy 7, or if you pay by standard credit or prepayment, which have their own regional tables on Ofgem’s page.

Where standing charges make the biggest difference

Standing charges are paid every day whether you use energy or not, so they shape the bill most in small or efficient homes. In Merseyside and Northern Wales, the electricity standing charge alone comes to about £246.96 a year (67.66p × 365 days). In London it is about £156.66. That is a difference of about £90 a year before either household switches on a light.

Add the gas standing charge and a dual-fuel home pays between about £267 a year in fixed charges (London) and about £357 (Merseyside and Northern Wales). For a one-person flat that uses well below typical amounts, those fixed charges can be close to a quarter of the whole bill, which is why some households in high standing charge regions look closely at tariffs with lower daily charges and higher unit rates.

The trade-off only pays if your usage is low. A higher unit rate costs more on every kilowatt hour, so a busy family home usually does better on a tariff that keeps unit rates low. Our standing charge guide shows how to work out the break-even point from your own annual usage.

Electricity-only homes: the regional gap is sharper

If your home has no gas supply, the regional spread is even more noticeable in percentage terms. At 2,500 kWh a year on the October cap, an electricity-only Direct Debit customer pays about £821.66 in London and £821.79 in the East Midlands, but about £943.46 in Merseyside and Northern Wales. That is a difference of around £122 a year, or roughly 15%, for exactly the same amount of electricity.

All-electric homes often use far more than 2,500 kWh, especially with storage heaters or a heat pump. In that case the unit rate matters more than the standing charge, and the regional unit rate gap (25.36p in the East Midlands against 27.86p in Merseyside and Northern Wales) adds up quickly. If you have a multi-rate meter, check Ofgem’s multi-rate table rather than the single-rate figures above.

How to use your region’s cap price to judge a fixed deal

The fairest way to compare a fixed tariff is against the price cap in your own region, not the national average. If you live in the East Midlands, a fix quoted at £1,720 a year is about £48 more than the October cap at typical use. In Merseyside and Northern Wales, the same quote would be about £85 less than the cap. Quotes from comparison sites already use your postcode, so the useful step is knowing which side of your regional cap a quote sits on.

Then think about what happens after December. Cornwall Insight has forecast a rise of around 16% when the cap changes in January, and Uswitch reports supplier predictions averaging £2,074 a year for January to March 2027. Forecasts can move, and Ofgem has not set the January cap yet. Our January 2027 forecast guide and fixed vs variable guide explain the decision in more detail.

A simple rule of thumb: a fix that costs a little more than your regional cap today can still work out cheaper over a year if the cap rises in January as forecast. A fix that costs much more than your regional cap needs a bigger rise to pay off. Always check exit fees, because they decide how easily you can leave if prices fall instead.

How to find your energy region

1. Use Ofgem’s postcode finder. Ofgem’s regional rates page has a postcode search that tells you which of the 14 regions you are in.
2. Check your bill. Your bill shows your unit rates and standing charges. If you are on a standard variable tariff, they should match your region’s cap for your payment method.
3. Note your annual usage. Your bill or online account shows how many kWh you used over the past year. That figure makes every comparison more accurate than typical usage.
4. Compare with your postcode. Enter your postcode and usage on a comparison site to see fixes priced for your region.

If you are on a multi-rate meter, or you pay by prepayment or standard credit, use the matching table on Ofgem’s page. Prepayment and Direct Debit customers have different caps, so comparing across payment methods gives a misleading answer.

Fit summary

• Good for checking a fixed quote: anyone who wants to know whether a fixed deal beats the cap where they actually live.
• Good for low-use homes in high standing charge regions: households in Merseyside and Northern Wales, Yorkshire, the North East or Southern Scotland, where the daily charge carries more weight.
• Consider staying on the cap for now: if every fix you are offered is well above your regional cap and you are comfortable with prices changing every three months.
• Consider a different table: if you have Economy 7 or another multi-rate meter, or you pay by prepayment or standard credit.

Important conditions

• The price cap limits unit rates and standing charges, not your total bill. Using more energy means paying more.
• Regional figures in this guide are for Direct Debit customers on single-rate electricity, from 1 October to 31 December 2026.
• Yearly costs are our own arithmetic at Ofgem’s typical usage of 2,500 kWh of electricity and 9,500 kWh of gas.
• Electricity carries no VAT from 1 October 2026 to 31 March 2027, so costs cannot be compared directly with earlier cap periods.
• Comparison results may not include every supplier or tariff, and fixed deals can carry exit fees per fuel.

Final decision card

Know your region’s cap first. At typical use the October cap ranges from about £1,672 to £1,805 a year depending on where you live.
Then compare fixes against that figure. A fix close to your regional cap can protect you if January brings the rise that forecasters expect.
Check the small print. Exit fees, contract length and whether the quote used your real usage all matter more than the headline.

FAQ

Why is my energy bill higher than the £1,723 price cap?

The £1,723 figure is an average for a typical household paying by Direct Debit across Great Britain. Your bill depends on your region’s capped rates and on how much energy you use. A home in Merseyside and Northern Wales pays about £1,805 at typical use, and any household using more than typical amounts pays more.

Which region has the cheapest energy price cap in October 2026?

At typical use, the East Midlands is the cheapest region for dual-fuel Direct Debit customers, at about £1,672 a year. North Western England is next at about £1,684. London has the lowest electricity standing charge, at 42.92p a day.

Which region pays the most under the October 2026 price cap?

Merseyside and Northern Wales pays the most, at about £1,805 a year at typical use. It has the highest electricity unit rate (27.86p per kWh) and the highest electricity standing charge (67.66p a day). That makes the fixed daily cost there about £90 a year higher than in London for electricity alone.

Why are standing charges different depending on where I live?

Ofgem says standing charges reflect how many people live in a region, how much energy they use on average, how much energy suppliers need to buy, and the cost of building and maintaining the local network. Areas with more spread-out networks or fewer customers tend to have higher charges. Gas standing charges vary much less than electricity ones.

How do I find out which energy region I am in?

Ofgem’s price cap rates page has a postcode finder that shows your region. Your bill also shows your unit rates and standing charges, which you can match against Ofgem’s regional table for your payment method. Comparison sites use your postcode automatically when you ask for quotes.

Should I fix my energy now if I live in an expensive region?

It depends on how a fixed quote compares with your own regional cap and on what you expect from January. Forecasters including Cornwall Insight expect the cap to rise in January 2027, so a fix close to your regional cap could save money over a year. Check exit fees before you commit, in case prices fall instead.

Do prepayment customers pay the same regional rates?

No. Prepayment, Direct Debit and standard credit customers each have their own capped rates in every region. Ofgem publishes separate tables for each payment method, so use the one that matches how you pay.