Energy price cap rises again: what it means for your bills this winter
30 Sept 2026 · @Hayley Flaxman
From 1 October, the energy price cap has gone up by 4%. For a typical household paying by direct debit, that means around £1,723 a year for gas and electricity, about £66 more than last quarter. With the colder months ahead and our heating on for longer, many of us will feel it straight away.
The good news is that there’s plenty you can do to take back control. Here’s what has changed, why, and the practical steps that can make a real difference to your bills.
What has changed?
The price cap is set by Ofgem, the energy regulator, every three months. It limits the unit rates and standing charges suppliers can charge on standard variable tariffs, not your total bill. So if you use more energy, you pay more.
For 1 October to 31 December 2026:
- The typical annual bill rises 4% to £1,723 (Ofgem).
- Gas bills are rising faster than electricity, by around 8%.
- If you’re on a fixed tariff, your prices won’t change until your fix ends. Ofgem says around 35% of households are in this position.
You can find the exact unit rates and standing charges for your region on Ofgem’s website.
Why are prices going up?
The main cause is the price of gas on international markets. Wholesale prices rose 11% in the three months Ofgem looked at, driven by conflict in the Middle East and unsettled global markets. Gas is also used to generate much of the UK’s electricity, so it pushes up both bills.
Without the government’s removal of VAT on electricity, Ofgem says the cap would have been about £45 higher. Ofgem will announce the next cap, for January to March 2027, in late November. Nobody can promise which way it will go, which is why more homeowners are looking at ways to depend less on the grid.
Five ways to cut your energy costs this winter
- Check your tariff. If you’re on a standard variable tariff, compare fixed deals and smart time-of-use tariffs. Some offer much cheaper electricity overnight.
- Add a home battery. A battery stores cheap off-peak electricity, or your own solar power, and uses it in the expensive evening peak. You don’t need solar panels to have one.
- Make your own power with solar. Solar panels cut the amount of electricity you buy, and with a battery you can use more of what you generate.
- Consider a heat pump. Replacing a gas boiler takes you off gas price rises altogether. Grants of up to £7,500 and £9,000 for those on oil are available through the Boiler Upgrade Scheme.
- Stop heat escaping. Draught-proofing, loft insulation and a well-maintained heating system all help your home use less energy.
Act before 0% VAT ends
Right now, home batteries, solar panels and heat pumps have 0% VAT. That includes batteries added to homes without solar. This relief is due to end on 31 March 2027, when VAT on these installations is set to go up to 5%. Installs need to be completed by then to qualify, so the sooner you book, the better.
Thinking about taking control of your energy costs? Our team can visit your home for a free, no-obligation survey. We’ll look at how you use energy and recommend what will make the biggest difference to your bills. Get in touch today.
Case Study
See how we helped our client reduce energy bills
Toby works from home and was relying on thermal layers to keep warm rather than heating the whole house with the gas boiler.
This allows them to run the household at a constant temperature through winter whilst reducing energy bills.
“The battery allows us to shift our energy consumption to cheaper energy windows- we still use the same amount of energy in the house, but we generate it from the Solar PV, or buy it during cheaper time periods to use at a later date. ”
