Changes to the Ofgem Price Cap - October 2026 – Outfox Energy

Question	Answer
What is the energy price cap?	The energy price cap is a limit set by Ofgem on the unit rates and standing charges that suppliers can charge customers on a standard variable or default tariff. It is not a cap on your total bill. Your total bill still depends on how much energy you use, where you live, your meter type and how you pay.
How does the energy price cap work?	The price cap sets the maximum amount suppliers can charge per unit of gas and electricity, plus the standing charge you pay each day for being connected to the energy network. Ofgem reviews the price cap every three months.
How does Ofgem decide what the price cap will be?	Ofgem considers multiple factors in the cap, such as the cost of wholesale energy, network costs, policy costs, supplier operating costs, metering costs, debt-related costs and VAT.
Does the energy price cap limit how much I pay overall?	No. The price cap limits the unit rates and standing charges that can be charged on tariffs covered by the cap. Your actual bill will still be based on how much energy you use, so it may be higher or lower than the typical annual figure published by Ofgem.
How often does the price cap change?	Ofgem releases a new price cap every quarter, so you can expect the price cap to change once every 3 months - in January, April, July and October.
Does the price cap affect all energy suppliers?	Yes. All domestic energy suppliers must comply with the price cap for tariffs that are covered by it. This ensures customers on standard variable or default tariffs are protected by the maximum rates set by Ofgem.
Does the price cap apply in Northern Ireland?	No. Ofgem regulates Great Britain only. This means the price cap only affects customers in England, Wales and Scotland.
What costs are included in the price cap calculation?	Your bill is made up of several costs, including the cost of wholesale energy, the cost of distributing this energy to your home, government policy costs, supplier operating costs, metering, debt costs and VAT.
Does the price cap include standing charges?	Yes. The price cap considers both the unit rate and standing charge.
What role does Ofgem play in the energy market?	Ofgem is the energy regulator, and is responsible for ensuring energy consumers are protected, promoting fair competition and ensuring suppliers meet the requirements on them. One of their key responsibilities is determining the price cap.
Are regional differences included in the price cap?	Yes. Energy prices can vary by region because the costs of supplying and distributing energy differ across Great Britain. Ofgem therefore calculates different capped rates by region.
Does the cap include VAT?	Yes, where applicable. From 1 October 2026 to 31 March 2027, VAT on domestic electricity is reduced from 5% to 0%. Gas remains subject to 5% VAT. These changes are reflected in the October price cap.
What is the October 2026 energy price cap?	From 1 October to 31 December 2026, the price cap for a typical dual-fuel household paying by Direct Debit is £1,723 a year at typical use. This is an increase of 4% from £1,663. The figure is a comparison based on typical consumption and is not a maximum bill.
What energy use does the £1,723 figure assume?	The headline figure uses Ofgem's current Typical Domestic Consumption Values of 2,500 kWh of electricity and 9,500 kWh of gas a year. Your actual costs will depend on your own energy use, region, meter type, tariff and payment method. Ofgem introduced these revised consumption values in July 2026.
Is £1,723 the price cap for every customer?	No. £1,723 is the typical annual figure for a dual-fuel customer paying by Direct Debit at Ofgem's typical consumption. Different payment methods, regions, meter types and levels of energy use will result in different annual costs.