Energy
The Ofgem price cap, October to December 2026
Ofgem’s price cap limits what a supplier can charge a household on a default energy tariff in Great Britain, per unit and as a daily standing charge. It is not a cap on your total bill if you use more than the typical household. It is not a broadband price. One Touch Switch does not move gas or electricity.
Reviewed 5 November 2026 · 6 min read · Independent · Not a price list
What Ofgem published for this quarter
For 1 October to 31 December 2026, Ofgem states that the price cap will be £1,723 a year for a typical household that uses both fuels and pays by Direct Debit. Ofgem describes that as a 4 percent rise on the previous cap period. The yearly figure is an illustration of typical use. It is not your quote. If you use more, you pay more. If you use less, you pay less.
The average electricity rate for Direct Debit customers on the default tariff, across England, Scotland and Wales, is 26.32 pence per kilowatt hour, with a daily standing charge of 54.83 pence. Ofgem states there is no VAT on electricity from 1 October 2026 to 31 March 2027. The average gas rate on the same basis is 7.97 pence per kilowatt hour, with a daily standing charge of 29.68 pence, including VAT at 5 percent on gas.
Ofgem also says the figures are rounded, that standing charges and unit rates vary by region, and that costs cannot be compared directly with the previous quarter because of the VAT change on electricity. A headline that ignores that warning is not a comparison. It is a slogan.
What the cap is, and is not
The cap applies to default tariffs, the tariff you are on if you have not chosen a fixed deal. Ofgem’s notice of this quarter says you are not affected by the change if you have moved to a fixed rate. A fix can still be a poor or a good deal. The cap does not bless it. Read the fix’s own end date and exit fee.
The cap is not a social tariff and not a guarantee you are on the cheapest energy. It is a ceiling on the rates a supplier may charge on the default tariff, not a recommendation. It does not include Northern Ireland. Energy there is set under a different regulator. Do not apply these unit rates to a Belfast bill.
The cap does not include broadband, a mobile phone, a water bill, or council tax. A company that shows one monthly total for “the house” may be adding those up. Split them before you decide anything. A discount for taking energy and broadband from the same brand is a contract term, not a law of physics.
Why this sits on a broadband site
Households plan the broadband switch in the same week they look at the energy bill. The processes are different. One Touch Switch, in force as the residential broadband and landline route since 12 September 2024, is started by the new broadband provider. An energy switch is started with the new energy supplier, under energy rules. Neither process moves the other contract.
Ofcom regulates communications. Ofgem regulates energy in Great Britain. A page that quotes the energy cap as if it were a broadband saving is mixing regulators. We quote the cap so you can see the scale of the other bill, with the date, and then leave it out of the broadband sum.
If a broadband offer claims to cut the energy bill, ask for the mechanism in writing: a dual-fuel discount, a fixed energy tariff, or advertising. Then ask what happens to that discount if you later change broadband provider. Price the line on its own. Price the energy on its own. Add them only after both answers exist.
How to use the figures without fooling yourself
Write down your actual annual kilowatt hours from a statement, not the typical household Ofgem used. Multiply by the unit rate that applies to your region and your payment method, then add the standing charge for the days in the period. The averages on this page are a national sketch for Direct Debit. Your region can differ. Standard credit differs again. Ofgem publishes the regional tables.
Do not subtract the energy cap from a broadband contract and call the result a saving. They are different purchases. Do not add the cap into a broadband total-cost note. The broadband note needs the broadband price after any introduction, any stated cash rise, any upfront cost, and any exit fee.
Reviewed 5 November 2026. The quarter ends on 31 December 2026. After that, Ofgem’s next cap replaces these rates. If you are reading this in 2027, these pence are history. The method is not: separate the fuels, separate the broadband, and do not let a typical bill stand in for yours.
Questions
- Is £1,723 my bill?
- No. It is Ofgem’s typical Direct Debit household for this quarter in Great Britain. Your usage, region and tariff decide the bill.
- Does One Touch Switch move my energy?
- No. The new broadband provider starts a broadband switch. Energy is a separate contract with a supplier.
- Does the cap apply in Northern Ireland?
- No. These Ofgem rates are for England, Scotland and Wales. Northern Ireland energy has a different regulator.
- Are the unit rates identical everywhere?
- No. Ofgem publishes regional standing charges and unit rates. The figures here are the stated averages.
- Why is there no VAT on the electricity rate?
- Ofgem states that VAT is removed from electricity bills from 1 October 2026 to 31 March 2027. Gas in the quoted rate still includes VAT at 5 percent.
- Should I add this to a broadband deal?
- No. Keep the sums apart. A bundle discount is a separate question, and only if the contract states it.