Households across Great Britain are set to see another change to energy prices from 1 October, just as colder weather means many of us will start using more energy at home.
Ofgem has announced that the energy price cap will rise by 4%, taking the typical annual cost for a household paying by Direct Debit from £1,663 to £1,723.
If you're on a standard variable tariff, the change could affect what you pay for gas and electricity this autumn. Here's what the new price cap means for your bills and what you should check before winter.
What is changing in October?
The new energy price cap will apply from 1 October until 31 December 2026.
For households on standard variable tariffs paying by Direct Debit, the average electricity unit rate will be 26.32p per kilowatt hour (kWh), with an average standing charge of 54.83p per day.
For gas, the average unit rate will be 7.97p per kWh, with an average standing charge of 29.68p per day.
These are average figures across England, Scotland and Wales, so the rates you actually pay will depend on factors such as where you live, how you pay and the type of meter you have.
You can find the latest regional rates and more information about the October change on Ofgem's energy price cap page.
Does the £1,723 price cap mean your bill cannot go any higher?
Despite its name, the energy price cap does not put a £1,723 limit on your total annual energy bill.
Instead, the cap limits the amount suppliers can charge customers on standard variable tariffs for each unit of gas and electricity, along with daily standing charges.
The £1,723 figure represents a typical annual bill based on average household energy use and Direct Debit payments. If your household uses more energy, you could pay more. If you use less, you could pay less.
Understanding how the energy price cap works and keeping track of how much energy your household uses can give you a better idea of what to expect from your bills.
Check which energy tariff you're currently on
The October price cap applies to households on standard variable tariffs. If you're currently on a fixed-rate tariff, your agreed rates will not change simply because the new price cap comes into effect.
If you're unsure which tariff you're on, check a recent energy bill or log into your online account with your supplier.
It's also worth checking when any existing fixed deal ends. If your tariff is coming to an end, your supplier may move you onto its standard variable tariff unless you choose another deal.
Knowing your current unit rates, standing charges and tariff end date will make it easier to compare your existing deal with other options.
Is it worth fixing your energy tariff?
With the price cap increasing, you might be wondering whether now is the right time to move to a fixed tariff.
A fixed tariff gives you set unit rates and standing charges for a specified period, which can make your energy costs more predictable. Fixing your tariff does not necessarily mean you'll pay less overall, though.
Before switching, compare the unit rates and standing charges against your current tariff and look carefully at the full terms of the deal. Some fixed tariffs also have exit fees if you decide to leave before the end of the contract.
There isn't one tariff that's right for every household. Comparing gas and electricity tariffs based on your own circumstances and energy use will give you a clearer picture of the deals available to you.
Take a meter reading
If you don't have a smart meter that sends readings automatically, taking regular meter readings helps make sure your bills are based on your actual energy use rather than estimates.
It's particularly useful to keep your readings up to date around a change in energy prices.
You can usually submit a reading through your supplier's website, app or customer service team. Keeping your own record of the reading is also useful in case you need to check a future bill.
If you're unsure how your meter works, our guide to gas and electricity meter types explains the different meters you might find in your home and how they record your energy use.
Look at your energy use before the colder weather arrives
The price cap change comes at a time when many households will soon be using their heating more regularly.
Small changes around the home could help reduce unnecessary energy use. This might include turning lights off when they're not needed, avoiding leaving appliances on standby and checking for draughts around doors and windows.
You could also look at longer-term improvements, such as insulation or upgrading an inefficient heating system, although the upfront cost and potential savings will vary between homes.
Reducing your energy use doesn't mean going without heating when you need it. Instead, look for areas where energy is being wasted and consider practical ways to make your home more energy efficient.
Our guide to keeping your house energy efficient has more information on improvements you could consider around your home.
Check whether you're eligible for help with your energy bills
If you're worried about paying your energy bills this winter, it's worth checking whether you're entitled to financial support.
Warm Home Discount
The Warm Home Discount Scheme will reopen in October for winter 2026 to 2027. Eligible households receive a one-off £150 discount on their energy bill.
Eligibility differs depending on where you live. In England and Wales, eligible households will usually receive the discount automatically, while the rules and process differ in Scotland.
You can check the latest eligibility information through the government's Warm Home Discount Scheme page: https://www.gov.uk/the-warm-home-discount-scheme
What if you're struggling to pay your energy bill?
If you're struggling to keep up with your energy bills, contact your supplier as early as possible rather than waiting for the amount you owe to increase.
Explain your circumstances and ask what support is available. Depending on your situation, your supplier might discuss options for managing what you owe or arranging repayments.
It's also worth checking whether you're eligible for any financial support with your household energy costs.
Don't wait until your winter bill arrives
With the new price cap taking effect as temperatures begin to fall, now is a useful time to understand what you're paying for energy.
Check your current tariff, make sure your meter readings are up to date and compare energy prices to see what deals are available. It's also worth reviewing how much energy your household normally uses during the colder months so you're better prepared for your winter bills.
Energy prices change over time, and the right tariff will depend on your circumstances. Understanding your current deal, keeping track of your energy use and comparing your options can help you make a more informed decision about what works for your household.
