Ofgem had not published the energy price cap for 1 January to 31 March 2027 as at 10 November 2026, so the latest official cap is £1,723 per year for 1 October to 31 December 2026. That figure is based on average Direct Debit rates in England, Scotland and Wales and has gone up by 4% compared with the last price cap period. The calculator above uses the October to December 2026 rates until Ofgem publishes the January to March 2027 rates.
Energy bill estimator
January 2027 price cap: publication status
Ofgem had not published the energy price cap for 1 January to 31 March 2027 as at 10 November 2026. Until it does, there is no official January figure to quote, and this page does not estimate one.
Ofgem sets the price cap level every 3 months. The latest published period runs from 1 October to 31 December 2026. Those are the figures used on this page and in the calculator above.
Once Ofgem publishes the January to March 2027 rates, the calculator will be switched over to them. Until then, any bill estimate here is based on the October to December 2026 rates.
Energy Price Cap Rates: Latest Published
Source: Ofgem. Figures are rounded to two decimal places and include 5% VAT on gas. There is no VAT on electricity from 1 October 2026 to 31 March 2027.
| Direct Debit average | 1 July to 30 September 2026 | 1 October to 31 December 2026 |
|---|---|---|
| Electricity unit rate | 26.11p per kWh | 26.32p per kWh |
| Electricity standing charge | 57.19p a day | 54.83p a day |
| Gas unit rate | 7.33p per kWh | 7.97p per kWh |
| Gas standing charge | 29.04p a day | 29.68p a day |
The price cap from 1 October to 31 December 2026
From 1 October to 31 December 2026, the energy price cap is £1,723 per year. Ofgem says this has gone up by 4% compared with the last price cap period.
The £1,723 figure is based on the average energy unit rate and standing charge for people who pay by Direct Debit in England, Scotland and Wales. It is an average, not a fixed bill.
Your own bill depends on how much energy you use. The cap does not limit the cost of your total bill, and the more energy you use, the higher your bill will be.
Unit rates and standing charges for October to December 2026
For Direct Debit customers, the average electricity unit rate is 26.32p per kWh from 1 October to 31 December 2026, with a daily standing charge of 54.83p. From 1 July to 30 September 2026 the same figures were 26.11p per kWh and 57.19p a day.
The average gas unit rate is 7.97p per kWh from 1 October to 31 December 2026, and the daily gas standing charge is 29.68p. From 1 July to 30 September 2026 gas was 7.33p per kWh with a standing charge of 29.04p a day.
All of these figures are rounded to two decimal places and include 5% VAT on gas. The table below sets out both periods side by side.
No VAT on electricity from 1 October 2026 to 31 March 2027
Ofgem states that there is no VAT on electricity from 1 October 2026 to 31 March 2027. That span covers October to December 2026 and the whole January to March 2027 cap period.
Gas is treated differently. The gas unit rates and standing charges published by Ofgem include VAT at 5%.
Because of the electricity VAT change, Ofgem says costs cannot be compared directly to previous periods. Bear this in mind when reading the electricity rows in the table below, which set the July to September 2026 figures next to the October to December 2026 ones.
What the price cap does and does not limit
The price cap is the maximum amount a supplier can charge for a unit of energy and the standing charge together. It does not limit the cost of your total bill. The more energy you use, the higher your bill will be.
The cap protects people on standard variable tariffs, where the unit rate can go up or down depending on the energy market. You are not protected by the price cap if you agreed a fixed tariff with your supplier, have a business energy contract, get your heat from a heat network or use heating oil.
Your own unit rate and standing charge can differ from the averages on this page. Ofgem says they vary with where you live, how you pay (Direct Debit, standard credit or prepayment meter), the fuel type you use and the type of meter you have.
For multi-rate tariffs like Economy 7, you pay one unit rate during peak hours and a different unit rate during off-peak hours. Together, they cannot be more than the price cap.
Estimating a January 2027 bill with the calculator
The calculator above estimates a bill from the October to December 2026 Direct Debit averages until Ofgem publishes the January to March 2027 rates. Enter your yearly electricity and gas use in kWh and it applies the capped unit rates and daily standing charges.
Standing charges are paid every day, even if you do not use any energy on that day. That is why the estimate includes them for both fuels whatever your usage.
If you pay by standard credit or with a prepayment meter, or live in a region with different rates, your figures will not match the Direct Debit averages exactly. Ofgem publishes unit rates and standing charges by region and payment method for 1 October to 31 December 2026.
Frequently Asked Questions
What is the energy price cap for January 2027? Ofgem had not published the cap for 1 January to 31 March 2027 as at 10 November 2026. The latest published cap is £1,723 per year for 1 October to 31 December 2026, based on average Direct Debit rates in England, Scotland and Wales.
How often does Ofgem change the price cap? Ofgem sets the price cap level every 3 months.
Is there VAT on electricity in January 2027? Ofgem states there is no VAT on electricity from 1 October 2026 to 31 March 2027. Gas figures include 5% VAT.
Does the price cap limit my total energy bill? No. The cap is the maximum a supplier can charge for a unit of energy and the standing charge together, and the more energy you use, the higher your bill will be.
Which rates does the calculator use? It uses the Direct Debit averages for 1 October to 31 December 2026: electricity at 26.32p per kWh with a 54.83p daily standing charge, and gas at 7.97p per kWh with a 29.68p daily standing charge. It keeps these until Ofgem publishes the January to March 2027 rates.
Related Calculators
Energy Price Cap 2026 | Energy Bills Calculator | Standing Charge Calculator | Electricity Usage Calculator | Heating Cost Calculator
Official Sources
Figures are based on 2026/27 published UK government rates. This guide is general information only and not financial advice. Last checked September 2026.
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