Millions of households on standard energy tariffs will see their bills rise from today, October 1, 2026, as Ofgem's latest price cap hike takes effect. Gas and electricity unit rates will increase by 4% over the period covering October 1 to December 31, 2026.
Ofgem says the energy price cap protects around 22 million households on default tariffs by limiting the maximum rates and standing charges that energy suppliers can charge. It is updated every three months to reflect changes in the underlying costs of supplying energy.
October's hike will see the average annual bill for a typical household paying by direct debit for gas and electricity rise from £1,663 to £1,723, marking an increase of £60 per year (or £5 per month).
Who Is Affected by the Rise
Around 35% of households are on fixed tariffs and will not be affected by this rise - this is about 11 million households. The increase reflects higher wholesale gas prices as a result of the ongoing conflict in the Middle East, with volatile global gas markets remaining the dominant driver of price changes.
As the weather turns colder, many households will therefore face higher energy costs. Richard Neudegg, director of regulation at Uswitch, said households should consider whether moving away from a standard tariff could reduce their costs.
Expert Warning on Winter Bills
Richard Neudegg, director of regulation at Uswitch.com, said: "Household energy prices look set to go from worse to even worse this winter."
"This latest prediction would represent the highest rate of increase since the energy crisis and will be extremely hard to bear for many households at the coldest time of year."
"It is too early to call the exact level of the January price cap, given the continued instability in the Middle East, but the direction of travel is very concerning, alongside other cost of living pressures households face."
Cheapest Fixed Deals to Consider
Uswitch has shared the latest top 10 cheapest fixed energy deals as of 9:10am on October 1. The tariffs listed are the cheapest non-bundle fixed tariffs, not variable or tracker, and exclude collective, retention and loyalty tariffs. All energy tariffs and prices mentioned are subject to change without notice, and rates vary upon region.
Uswitch says these are the cheapest tariffs available based on suppliers who have updated Uswitch with their rates. January price cap predictions are based on latest analysis from Cornwall Insight.
Neudegg added: "Switching energy tariff to a well-priced fixed deal is the biggest lever households on the price cap can pull to bring their costs down right now. The cheapest deal on the market is currently £387 less than this predicted January price cap based on typical use, with some deals also cheaper than October's rates."
"While getting off the standard variable tariff means you can avoid these big increases to come - with bills already significantly higher than last year - it may not be enough, so keeping a close eye on energy usage will be crucial."
"This winter will be tougher than last, so households should take action now. For those worried or concerned about paying their bills - it's important not to suffer in silence."
