Energy · Guide
Energy price cap: today's rates and what comes next
The quick answer
For a typical home in London paying by Direct Debit, the cheapest tariff here on 27 Oct 2026 is Octopus Energy Flexible Octopus at £1,697 a year (about £141.38 a month). The Ofgem price cap for the same home is £1,723 a year. Every rate is read from the supplier's own tariff page.
Price cap now · Ofgem
£1,723 a year
Electricity £858 · Gas £865 · typical home
- Electricity per kWh
- 26.32p
- + 54.83p a day
- Gas per kWh
- 7.97p
- + 29.68p a day
1 Oct 2026 to 31 Dec 2026
Typical home · dual fuel · Direct Debit
Energy tariffs, cheapest typical bill first
Rates differ by region, so each region has its own table. The bill is for Ofgem's typical home: electricity and gas, paid by Direct Debit.
London
AffiliateRanked by price, read from each seller's own site. Prices checked on each provider's own site, 27 Oct 2026.
Eastern England
AffiliateRanked by price, read from each seller's own site. Prices checked on each provider's own site, 27 Oct 2026.
What the price cap is
The energy price cap limits the unit rate and the daily standing charge on standard variable tariffs, not your total bill.
Ofgem sets the cap every three months. New rates start on 1 January, 1 April, 1 July and 1 October.
The unit rate is the price of each kilowatt hour (kWh) you use. The standing charge is a fixed daily amount for each fuel, paid even on days you use no energy. Learn how standing charges work.
Standard variable tariffs have no fixed end date, so their prices can change. The cap does not set your total bill. Your bill still goes up if you use more energy.
The next cap: 1 January 2027
The next price cap period starts on 1 January 2027 and runs to 31 March 2027. Ofgem announces the new rates before it starts, so you can plan ahead.
This page shows the new rates once Ofgem publishes them. Until then, the rates shown here today stay in place. They come straight from Ofgem's own figures.
Thinking ahead? Compare fixed and variable tariffs to see which one suits you. A fixed deal holds your unit rates and standing charges for the length of the contract.
What will your bill be?
Put in your own use and see your yearly bill on today's price cap.
What to do now
Start with four simple steps before the cap changes on 1 January 2027.
- Take a meter reading. Send your electricity and gas readings to your supplier so your bills match what you use.
- Check your Direct Debit. It is the cheapest way to pay on the price cap, and standard credit costs more.
- Compare a fix with the cap. A fixed tariff holds your prices steady for the length of the deal, usually 12 to 24 months. Compare the two before you decide.
- Try the calculator. Enter your usage in the energy bill calculator to see your yearly cost.
Straight answers
Questions people ask
- When does the energy price cap change?
- Ofgem sets the energy price cap every three months, on 1 January, 1 April, 1 July and 1 October. The next period starts on 1 January 2027 and runs to 31 March 2027. Until then, the rates shown on this page are the ones that apply.
- Does the price cap limit my total bill?
- No, the price cap does not limit your total bill. It only caps the unit rate (the price you pay per kWh) and the daily standing charge on standard variable tariffs. Your bill still rises when you use more energy, so using less still saves money.
- Should I fix my energy before January?
- Fix if you want your unit rates and standing charges held for the whole deal, usually 12 to 24 months. Leaving early can cost an exit fee for each fuel, but you have a 14-day cooling-off period after agreeing a new contract. Next, use our energy bill calculator to compare a fix with the cap.
Keep comparing
Your next question, answered
- Fixed vs variableFixed or variable energy tariff? How each works against the Ofgem price cap, when fixing saves money and what exit fees cost.
- Standing chargesWhat the energy standing charge is, today's capped rates for gas and electricity, and how it affects low-use homes.
- Energy bill calculatorWork out your gas and electricity bill on the current Ofgem price cap from your yearly use, and compare your own tariff. Free.