Energy price cap January 2027: what we know
Not announced yet. Ofgem will publish the cap for 1 January to 31 March 2027 by 25 November 2026, and we'll update this page when it does. Until then, here are the official rates now in force and a calculator for any change.
Current cap: 1 October to 31 December 2026 (Ofgem)
| Direct Debit, GB average | Unit rate | Standing charge |
|---|---|---|
| Electricity (no VAT from 1 October 2026 to 31 March 2027) | 26.32p/kWh | 54.83p/day |
| Gas (including 5% VAT) | 7.97p/kWh | 29.68p/day |
That's a 4% rise on July–September for a typical dual-fuel household. Ofgem's typical (medium) use is now 2,500 kWh of electricity and 9,500 kWh of gas a year (updated July 2026). At these rates, that works out to about £1,724 a year.
What a change would cost you
Key dates
| Date | What happens |
|---|---|
| By 25 November 2026 | Ofgem announces the cap for 1 January to 31 March 2027 |
| 1 January 2027 | The new cap starts. Take a meter reading on 31 December or 1 January, so you're billed at the right rate. |
| By 23 February 2027 | Ofgem announces the cap for 1 April to 30 June 2027 |
| 31 March 2027 | The temporary removal of VAT on electricity is due to end |
What you can do now
- Send meter readings to your supplier, so you're not paying on estimated bills. See the meter reading calculator.
- Compare fixed deals against the cap. A fix only helps if its total cost (unit rate and standing charge) beats the cap for your usage.
- Struggling to pay? Your supplier must help you, for example with a repayment plan or emergency credit. See also Winter Fuel and Cold Weather Payments.
- Sharing a house? Split the bill fairly with the bill split calculator.
Source: Ofgem: changes to the energy price cap, 1 October to 31 December 2026, Ofgem typical consumption values. Forecasts from consultancies aren't Ofgem figures, so we don't use them here. Your regional rates differ slightly from the GB average.
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Has the January 2027 energy price cap been announced?
Not yet. Ofgem says it will announce the cap for 1 January to 31 March 2027 by 25 November 2026. The current cap (1 October to 31 December 2026) is 26.32p/kWh for electricity and 7.97p/kWh for gas, by Direct Debit.
Why is my electricity cheaper from October 2026?
The government removed VAT from household electricity bills from 1 October 2026 to 31 March 2027. Gas still has 5% VAT.
Does the price cap limit my total bill?
No. It caps the unit rate and the daily standing charge, so the more energy you use, the more you pay.
Kit list: Winter energy-saving kit: cheap fixes that cut heating waste. (Our page. It includes Amazon affiliate links.)
Related calculators & guides
Winter energy-saving kit · Meter reading → £ · Winter Fuel & Cold Weather Payments · April bill rises checker · Council tax April 2027 · Split bills with housemates · Free spring money checklist (PDF) · Council tax discount
- Plug-in energy usage monitor (Amazon)
- Radiator reflector foil (Amazon)
- Door draught excluder (Amazon)