What the cap controls

Ofgem sets maximum rates for energy and standing charges on eligible default tariffs. Suppliers can charge less, and the actual rates vary by region, fuel, meter and payment method. The cap is therefore a pricing control on rates, not a universal flat bill.

The current September 2026 period

For 1 July to 30 September 2026, Ofgem published average Direct Debit rates of 26.11p/kWh for electricity with a 57.19p/day electricity standing charge, and 7.33p/kWh for gas with a 29.04p/day gas standing charge. These are averages across England, Scotland and Wales rather than personalised quotes.

What changes from October 2026

Ofgem has announced that the cap for 1 October to 31 December 2026 will be Β£1,723 a year for a typical dual-fuel household paying by Direct Debit, around 4% higher than the previous cap period. The representative figure is based on typical consumption; a household using more energy can pay more.

Who is not protected by the cap

Ofgem states that fixed tariffs are not protected by the cap in the same way as eligible default tariffs. Business energy contracts, heat networks and heating oil are also outside the domestic default-tariff cap described here.

Using the cap when comparing

Treat the cap as a benchmark, not a personal quote. Compare the actual rates offered for your region and payment method. A fixed tariff below the current variable benchmark may look attractive, but also consider term length, exit fees and how future cap levels could change.

Why the cap is not a savings target

A capped default tariff can still cost more or less than another deal depending on your region and consumption. Treat the cap as a regulatory ceiling on applicable rates, not as evidence that staying on a default tariff is the cheapest option for your household.

Current 2026 context

Ofgem states that the average Direct Debit cap for 1 October to 31 December 2026 is Β£1,723 for a typical dual-fuel household, with average electricity at 26.32p/kWh plus 54.83p/day and gas at 7.97p/kWh plus 29.68p/day. These are averages across England, Scotland and Wales rather than a personal bill limit.

Use the calculator: enter your own kWh, unit rates and standing charges in the UK energy cost calculator to turn tariff figures into a simple annual estimate.
Referral reminder: if you decide the Fuse tariff works for your home, this site currently lists referral code RCZCOL81649. Referral benefits remain subject to Fuse Energy’s live campaign terms.
Sources and further reading

Supplier tariffs, price-cap rates and referral campaigns can change. Check live official information before making a switching decision.