29th September 2026
The energy price cap changes again on 1 October, and households are being told to expect another increase in their bills.
But the most useful question isn't simply how much the cap is going up.
It is what can households actually do about it?
Ofgem's new price cap runs from 1 October until 31 December 2026. The headline figure for a typical household paying by Direct Debit rises by 4%, from £1,663 to £1,723 a year.
But the £1,723 figure is only an illustration based on typical consumption. It is not a limit on how much an individual household can pay.
The actual bill depends primarily on how much energy is used.
And that is where households have some control.
Start with the meter
One of the simplest things to do is take an electricity and gas meter reading around 1 October and send it to the supplier.
That gives you a clear record of how much energy you have used before the new rates begin.
It is particularly useful for households that receive estimated bills.
If you have a smart meter operating correctly, the supplier should already have the information, but checking your account is still worthwhile.
Don't concentrate only on the headline price
From 1 October the average electricity unit rate under the cap rises slightly from 26.11p to 26.32p per kWh.
But the electricity standing charge falls from 57.19p to 54.83p a day.
Gas is different. Its average unit rate rises from 7.33p to 7.97p per kWh and the standing charge rises from 29.04p to 29.68p.
There is also an unusual change this time.
The Government is removing VAT from domestic electricity bills from 1 October until 31 March 2027. Ofgem has already incorporated that change into its published electricity rates. Gas continues to carry 5% VAT.
So simply comparing the October electricity rate with the previous rate doesn't give the whole picture.
Check your tariff
The price cap applies to default tariffs. It does not mean every tariff available from a supplier costs the same.
Households should therefore check what tariff they are actually on.
Some suppliers offer fixed tariffs, while others offer time-of-use tariffs or cheaper electricity at particular times.
But don't switch simply because an advertised tariff has a lower headline price.
Check the unit rate, standing charge, length of the deal, exit fees and any conditions.
For someone who uses relatively little energy, a lower unit rate accompanied by a substantially higher standing charge may not produce the saving expected.
The biggest saving is usually the energy you don't use
This sounds obvious, but it is worth thinking about where the energy actually goes.
Heating is usually one of the largest household energy costs.
Rather than trying to make the entire house warm all the time, some households may be able to heat occupied rooms more efficiently and reduce heating when rooms are empty.
That doesn't mean people should sit in an uncomfortably cold house.
There is a balance between saving money and keeping the home adequately warm, particularly for older people and anyone who is vulnerable to cold.
Simple measures can also help.
Close doors between heated and unheated areas. Use curtains when it gets dark. Don't heat rooms unnecessarily. Make sure radiators aren't blocked by furniture and check for obvious draughts around doors and windows.
And before buying expensive energy-saving gadgets, deal with the cheap things first.
A draught excluder costing a few pounds can sometimes be more useful than an expensive piece of technology.
Look at the small electrical loads
Electricity is expensive enough that seemingly insignificant habits can add up.
Tumble dryers, electric heaters, immersion heaters, ovens and kettles can all use substantial amounts of electricity.
A kettle doesn't need to boil twice as much water as you actually need.
A tumble dryer doesn't need to be used for every load.
An immersion heater doesn't need to run simply because it is convenient if another method of heating hot water is available.
And electric heating deserves particular attention because one unit of electricity costs considerably more than one unit of gas under the October price cap.
Smart meters can be useful even if you don't change supplier
A smart meter isn't automatically going to reduce a bill.
Its real benefit is that it can show households how much electricity they are using and, with some suppliers, when they are using it.
That can reveal surprises.
A household might discover that an appliance they assumed was insignificant is actually consuming a surprising amount of electricity.
Others may find that moving some consumption away from expensive periods can reduce costs if they have an appropriate tariff.
Check whether you qualify for help
Households struggling with energy costs shouldn't assume that there is nothing available.
The Government's energy-support information includes the Warm Home Discount, energy-efficiency schemes and other forms of assistance. In Scotland, there are also specific forms of support including Winter Heating Payment for eligible households.
Suppliers also have obligations towards customers who tell them they are struggling to pay.
That is important.
Don't simply stop paying an energy bill because you cannot afford it. Contact the supplier and explain the situation.
A supplier may be able to agree a repayment arrangement or provide other support.
Don't forget heating oil
For households in parts of rural Scotland, including Caithness, the price cap is not the whole energy story.
A household using heating oil does not benefit directly from the Ofgem gas price cap.
The economics can therefore be very different.
Such households should think about the cost of the next oil delivery alongside their electricity bill and, where possible, build a buffer before the tank becomes almost empty.
That can make household budgeting much easier than waiting until the tank is nearly dry and then having to buy whatever the prevailing price happens to be.
The best advice may be to measure rather than guess
There is no single energy-saving trick that will work for every household.
A large family in a poorly insulated house has a very different problem from a single person in a well-insulated home.
The first step is therefore to find out where the money is actually going.
Look at the last year's electricity consumption.
Look at the gas or heating-oil consumption.
Check the standing charges.
Check the tariff.
Then identify the biggest uses of energy.
It is much easier to save £100 by tackling something that costs £300 than by spending hours trying to save pennies on something that costs £20 a year.
October doesn't have to mean panic
Energy prices remain considerably higher than many households became accustomed to before the energy crisis.
The Commons Library says energy prices have fallen from their crisis peaks but remain well above pre-crisis levels, with little prospect of large reductions in bills in the immediate future.
That makes energy budgeting increasingly important.
But the October price-cap increase is not a reason for households to panic.
It is a reason to check the numbers, check the tariff, check the meter and then concentrate on the biggest opportunities to reduce consumption.
The most useful question isn't:
"How can I stop using energy?"
It is:
"Which energy am I paying for that I don't actually need?"
That distinction could save a household considerably more than simply turning the heating down by another degree.