Energy price cap to rise by 4%

From 1 October to 31 December 2026, the energy price cap will rise by 4% for a typical household that pays by Direct Debit. See if you could save by switching today.

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Why switch gas and electricity suppliers?

There are several reasons to do an online energy comparison and consider switching your supplier:
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Save money

Comparing energy suppliers and deals each year can potentially save you money on your gas and electricity.

At Compare the Market we’re constantly monitoring the energy market to help you find the right deal for your home.

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Get better service

Even if you’re on a lower-cost contract, you may be unhappy with your energy supplier’s service.

Switching to a supplier with better customer service could make life a lot easier.

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Greener energy

You might want a supplier that uses more renewable energy.

With over half of the UK’s electricity supply coming from renewable sources as of early 2026, green suppliers could soon offer some of the cheapest energy deals1.

What’s the difference between a variable and fixed-rate energy tariff?

Most people are either on a variable or fixed energy tariff.

Variable energy tariff

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    You'll get advance notice if your rate is going to change

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    You won't be charged more than the energy price cap per unit of energy

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    Great for flexibility to switch fee-free whenever you want

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    Your unit rate can change over time

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    Can be more expensive than a fixed tariff when the price cap goes up

Fixed energy tariff

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    Your unit rate is locked in for the duration of your contract – even if the price cap rises

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    Can work out cheaper than variable tariffs if the price cap rises

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    Ideal for predictable prices, easy budgeting and peace of mind around price cap announcements

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    You'll miss out on cheaper energy if the price cap falls below your fixed rate while you're in contract

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    You'll likely need to pay an exit fee to switch before your fixed contract ends

Quick tip

If your fixed term is ending and you don’t do anything, your current supplier will likely switch you to a variable tariff at the end of your contract.

This could be more expensive, so it’s worth shopping around for a better deal before then.

Should I switch to a fixed-rate energy tariff?

A fixed tariff is ideal if price stability is your priority. Your unit rates stay the same for the length of your contract, making budgeting easier and protecting you if the price cap rises.

However, if the price cap falls, you won’t benefit from any potential savings if you’re outside of your fee-free switching window.

But if you value the flexibility of switching whenever you like, a variable tariff could be the better option.

Just bear in mind that prices could go up or down at any point.

Did you know?

According to Ofgem, 65% of UK homes are on a standard variable tariff.

Variable tariffs tend to be more expensive – and unstable – than fixed deals. So if you’re one of them, it could be a good time to compare prices and see if you could save by fixing.

How do I know what energy tariff I'm on?

You can find out your tariff type and end date (as well as unit rates and usage) on your energy bills. If you have an online account with your supplier, you should be able to find all this information there too.

Another option is to contact your supplier directly to find out what energy tariff you’re on.

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What is the energy price cap?

If you’re on a variable-rate tariff, the amount you pay for your energy can go up or down, usually depending on what’s happening to the price cap.

The energy price cap is set by Ofgem every three months, and it sets a limit on the unit rate and standing charge that suppliers can charge on their standard variable tariffs.

The unit rate is the cost charged per unit of electricity or gas you consume, measured in pence per kilowatt-hour (kWh).

The standing charge is the fixed daily fee providers charge to supply your service. You have to pay this no matter how much energy you use.

For the period 1 July to 30 September 2026, the price cap is set at:

£1,862
for those paying by direct debit
£1,812
for those with a prepayment meter
£2,005
for those who pay on receipt of their bill

Price cap to rise by 4% from 1 October

The energy price cap will rise by 4% for a typical household that uses gas and electricity and pays by Direct Debit.

The price cap will be equivalent to £1,723. Ofgem says the average household on a supplier's standard default tariff will pay around £5 a month more.

Are prices definitely increasing?

This might sound like a reduction on the current level of £1,862 stated above, rather than an increase.

That's because Ofgem updated its Typical Domestic Consumption Values in July to reflect that households are using less energy overall. This means the 4% rise from October is actually based on a starting figure of £1,663.

The most important thing to know is that this is just a typical usage calculation, and the price cap is still going up.

Bear in mind

The price cap doesn't set the maximum amount you’ll pay for your energy; it just limits the rates that providers can charge.

The above figures are based on average annual usage for a typical household. So if you use more than that, you’ll pay more.

The energy price cap doesn’t apply to households in Northern Ireland.

How much does energy currently cost in the UK?

Based on the current price cap, energy rates are set at:

Gas

Electricity

Unit rate per kWh

7.33p

26.11p

Daily standing charge

29.04p

57.19p

This means that the average home on a variable tariff and paying by Direct Debit pays roughly £1,862 a year for energy, or £155 a month. But that number can vary depending on:

  • Where you live

  • Your energy usage

  • Your energy tariff

  • How you pay your bills.

Why are energy prices going up?

The upcoming 4% rise in the energy price cap is a result of higher wholesale gas prices, according to Ofgem. It puts this down to the ongoing conflict in the Middle East.

Neil Kenward of Ofgem says: "High international gas prices are continuing to drive energy costs in the UK. We welcome the government's intervention to remove VAT from electricity bills, without which customers would have faced even higher costs this winter.

"Savings are available by choosing a fixed tariff, which are available at £100 or more below the October price cap."

Compare tariffs now

What does the new electricity VAT cut mean for me?

Prime Minister Andy Burnham recently announced the removal of VAT from domestic electricity bills, effective from 1 October 2026. The change will apply for six months.

The removal of VAT will save households around £45 per year on average. Actual savings will vary depending on electricity usage.

What other energy tariffs are available?

Fixed and variable tariffs aren't your only options. Depending on your household and how you use energy, one of these tariff types might be a better fit.
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Dual fuel

Get your gas and electricity from the same supplier under one energy plan.

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Electricity only

Designed for homes that don't use mains gas, or if you prefer to get your electric and gas from different suppliers.

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Green energy

Ideal for homes wanting to lower their carbon footprint. However, these could cost more than other tariffs, so it’s worth comparing.

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Prepayment meter

Pay for your energy in advance and top up as needed. Great for controlling your spending but it’s typically more expensive than paying by Direct Debit.

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Economy 7

Benefit from cheaper electricity during set off-peak hours, usually overnight.

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EV tariffs

Designed for electric car owners, often with lower rates when charging at quieter times.

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Solar tariffs

Suitable for homes with solar panels, allowing you to sell energy back to the National Grid.

How do energy bills work?

In this quick video, money expert Guy Anker explains how energy bills and the price cap work.

This video is hosted by YouTube. By pressing play, you consent to their use of cookies. See their cookie policy for more information.
Text transcript

So your energy bills are typically made up of two elements: a standing charge, which is a bit like line rental on a phone. It's just an amount you always pay every day, regardless how much you use. It's fixed. And then the unit rate of the gas or the electricity that you're using, which obviously the amount you pay fluctuates based on how much you use.

A lot of people ask about fixed-rate tariffs. These are where the unit charge and the standing rate is literally fixed. It doesn't mean the amount you pay is fixed. That depends on how much you use, but it gives you an element of surety to help you budget.

And these days, lots of people talk about electric vehicle tariffs where they have an electric vehicle, sometimes called EV tariffs. These are where you get a deal where the rate is significantly cheaper overnight than what it is during the day. The hours could vary depending on provider. It means you can charge your car overnight for a lot less.

People often talk about the energy price cap because every three months or so it's reviewed by the regulator Ofgem. And that means every three months or so it changes. It can go up, it can go down. It's a cap on the unit rate of your energy and standing charge. It's not a cap on the actual pounds and pence you pay that will move up and down depending on your usage, but it does mean those underlying rates are capped for that period.

How to compare energy and switch supplier

It all happens in just three simple steps:

Enter your postcode

We’ll show you an estimate of your current energy spend and usage. You can update anything that doesn’t look right.

Compare energy deals

We’ll provide you with a list of deals that may be available to you. You can filter this to suit your needs.

Choose your preferred tariff, fuel and payment type, and more.

You can also see your potential savings by clicking the ‘Tariff details’ button.

Make the switch

Once you’ve found a deal you’re happy with, provide us with a few details about yourself, and your new energy supplier will take care of the switching process. It usually takes around five working days.

Your gas and electricity supply will carry on as normal. The only thing that changes is where your bills come from.

If you were paying by Direct Debit before, you shouldn’t need to cancel this. Simply give your new supplier your payment details so they can start charging you once the switch is done.

If you change your mind

You’ll have a 14-day cooling-off period, starting from when you agree your new contract. You can cancel without a penalty during this time.

How do I know which supplier is right for me?

There are some factors you might want to consider when choosing an energy supplier:

  • Is the deal it is offering below the energy price cap?

  • Do you want to switch to a fixed energy tariff?

  • Does the provider have a good reputation for customer service?

  • What’s the supplier’s record when it comes to green energy and renewables?

  • Does the provider charge exit fees if you leave a tariff early?

Emma Spencer

What our expert says...

"With energy bills set to rise again in October, now is a good time to review your tariff and compare new deals.

"Recent market changes have led many households to look for more certainty over their energy costs. A fixed tariff can help by locking in your rates for the length of your contract, making bills more predictable, budgeting easier, and protecting you from rising costs.

"If you're already on a fixed deal that's ending soon, it's particularly important to shop around for a new one. Doing nothing could mean moving onto a variable tariff and being exposed to future price increases."

Emma Spencer, Utilities expert

Which is the best energy supplier in 2026?

There's no single best energy supplier, as the right choice depends on your needs.

Ofgem rates suppliers on factors such as customer service, complaints handling, switching and ease of contact.

In recent years, smaller suppliers have often scored highly for overall customer service, showing that it's worth considering lesser-known names as well as larger brands.

But in 2026, customer satisfaction is fairly consistent across suppliers of all sizes. So the best way to find the best energy supplier for you is to compare deals and check customer reviews.

Will it cost me anything to switch energy suppliers?

That depends on your circumstances. Under Ofgem rules, you can switch without paying any early exit fees if you’re in the last 49 days of a fixed-rate energy tariff.

If you're on a standard variable tariff, you can switch fee-free any time.

If you're in debt and want to switch

You can still switch energy deals fee-free as long as you’ve been in debt with your current supplier for less than 28 days. Any money you owe will simply be added to your final bill.

If it’s been more than 28 days, you’ll need to repay what you owe first.

If you’re on a prepayment meter, you should be able to switch without any cancellation fees if you owe less than £500. Your debt will be transferred to the new supplier, who can help you arrange a suitable repayment plan.

What support is available if I’m struggling with my energy bills?

Ofgem rules state that all energy suppliers must have plans in place to help customers who can’t afford to pay their bills.
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If you’re struggling with your energy bills, contact your energy supplier as soon as possible. If you’re worried about what to say, take a look at this MoneyHelper guide to talking to your creditor.

For more information, see our guide on what to do if you can’t afford your energy bills.

Learn about your energy options

Explore how energy tariffs, suppliers and usage work to help you make informed choices

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Energy plans & supply
Energy tariffs
Review tariff types, payment choices and what shapes energy prices
Usage & efficiency
How much energy am I using?
Track usage, read meters and understand what drives household demand
Policy & support
Energy grants and schemes
Explore grants, supplier schemes and help with energy bills
Billing & costs
Prepayment meters
Learn how prepay meters work, where to top up and support available
See all our energy guides

FAQs

Can I compare gas and electricity quotes separately?

You can compare gas and electric quotes separately or together (also known as ‘dual fuel’). While dual fuel is a popular way to keep your energy bundled, you can also get gas and electricity from different providers. Check both to see what works out cheaper.

What’s the cheapest way to pay for gas and electricity?

The cheapest way to pay your gas and electric bill is usually via direct debit. If you don’t already, consider paying by direct debit if you can, as this could save you money.

Where can I get the cheapest gas and electric?

This depends on whether you choose a fixed tariff or a price-capped tariff. Ultimately, the best way to save on gas and electricity is to shop around for cheap energy deals.

Is it easier to switch gas and electricity together?

Switching dual fuel or switching one energy type on its own are both simple when you use Compare the Market.

The only potential complication would be if you’re on a fixed-term contract that hasn’t yet expired. In this case, you may have to pay an exit penalty.

Can I switch energy supplier if I owe money?

If you have bills that are more than 28 days old, you might find that you can’t change energy supplier until you’ve paid them. But there are some exceptions.

If you’re on a prepayment meter and you owe money, for example, the energy supplier you switch to will take on the debt and you repay them instead.

How can I switch gas and electricity when moving home?

If you’re moving house and you’re happy with your existing deal, your energy supplier might let you move it to your new home. Just give them your new address and the moving-in date.

On moving day, take a meter reading before you leave your old address and give this to your supplier. This way, you can be sure your final bill will only reflect what you’ve used.

Be sure to also take a meter reading at your new home straight away too, to avoid paying for energy used by the previous owner.

Can I switch energy provider if I rent?

Tenants can switch energy providers if they pay the supplier directly for their gas and electricity.

If your landlord pays your energy bills then charges you, choosing the energy supplier is up to them. Although you can always ask them if it’s possible to switch to the cheapest energy supplier.

Can I get a smart meter if I switch gas and electricity?

This should be an option, yes. You can ask your current energy supplier for a smart meter and it'll let you know if it’s possible to get one and when.

The government has proposed that suppliers should take ‘all reasonable steps’ to have smart meters in all homes by 2030.

Some suppliers may offer beneficial tariffs for smart meter users.

How can I find a green energy supplier?

When you compare energy suppliers with Compare the Market, you’ll be able to see tariffs for 100% renewable energy.

Who is the cheapest energy supplier in the UK?

There isn’t necessarily a single cheapest energy supplier. How much you pay for energy depends on where you live, your tariff type and how much energy you use.

However, many providers often offer competitive deals below the price cap.

An easy way to find the cheapest energy tariff for you is to compare deals through Compare the Market.

What happens if my energy company goes bust?

If your energy provider goes bust, you’ll still have gas and electricity. Ofgem will usually appoint a new supplier for you, and any credit on your account is normally protected.

It’s worth comparing your options once your new supplier is confirmed to make sure you’re on the right deal for you.

I’ve never heard of this energy supplier. How do I know they’re legitimate?

All genuine UK energy suppliers are regulated by Ofgem, meaning they all follow the same rules regardless of their size.

Before switching, you can also check a company’s customer reviews, website, social media pages and service ratings to make sure you’re comfortable with them.

Looking for something else?

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Dan Tremain
Reviewed 28 Aug 2026 by Dan Tremain Energy and business energy expert

Dan is focused on helping people and businesses get the right deal for their energy in a volatile market. For more than 20 years, he has been introducing, developing and managing product propositions across a variety of industries, including energy, insurance and banking, all to get the right outcome for customers. 

Methodology

1 GOV.UK Energy Trends January to March 2026