Energy prices from October 2026, and what they mean for you
Energy prices are going up: Ofgem's price cap has risen, meaning the average typical dual-fuel energy bill will go up around 4% from October 1.
Most of this rise comes from gas As tensions in the Middle East continue to rumble, wholesale prices have jumped further and this has fed through to prices.
Octopus remains the only large supplier to have never charged the full Ofgem price cap.
You can see the previous price change blog for July 2026 here.
From October 1, energy bills are rising
The Ofgem price cap has risen by 3.6%, with most of that rise coming from gas. Although the gas unit price is up sharply, by 8.7%, the electricity unit rate is only up 0.2%.
The rises come despite the government's cut to VAT. Without it, bills would have risen by even more. We will pass on the full VAT cut as soon as it comes into effect on October 1.
Although the gas standing charge price cap (the maximum suppliers are allowed to charge for it) rose 2.2%, we have decided to decrease gas standing charges slightly across the board. Electricity standing charges are also falling in all regions. Octopus's standing charges on standard tariffs remain the lowest of any large supplier.
We are also the only large supplier to have never charged the full Ofgem price cap for our flexible tariff.
Good to know: if you're not paying by Direct Debit, you could save ££s by setting one up with us. It's super quick and easy to get set up in your online account.
Should I fix my rate now?
While our 18 month and 12 month Fixed tariffs are currently more expensive than our new Flexible Octopus rates due to the impact of the recent conflict overseas, they do offer more certainty.
Ultimately, no one has a crystal ball and can guarantee what the energy market will do as we head into 2027.
We expect the price cap to rise at the beginning of January, and some experts are predicting a rise of around 25%.
So if you’d prefer to lock in your rates for a longer period and shield yourself from any further increases over winter, fixing could be a good option. Check our latest Fixed tariff rates here.
If you ever find yourself struggling to pay we have lots of support on offer.
Frequently Asked Questions
General
If you're already on a fixed tariff, it will not change until the end of your term. In fact, you may see your bills drop slightly on October 1 because we will pass on the government's VAT cut to 0% immediately.
If you’re on a variable tariff, like our Flexible Octopus, the Ofgem price cap caps the price you pay.
The price cap specifically applies to variable tariffs because they aren’t fixed against the volatility in the energy markets. Different suppliers can refer to these tariffs in a number of ways; standard variable tariff (SVT), non-fixed, etc. At Octopus our variable energy tariff is called Flexible Octopus.
If you’d like to confirm which tariff you're on, and details like your current prices and contract dates, you can see them on your online account (scroll a little way down and look at the details below your property address).
You can read more about the energy price cap and whether it affects you on Ofgem’s website.
No: this figure is not the absolute maximum a customer could pay.
If you're on a "default" or "standard variable" tariff, the Ofgem price cap actually limits:
the maximum amount a supplier can charge you for each unit of gas and electricity you use
the daily standing charge (the fixed cost to connect your home to the grid).
Put simply: if you use more - or less - energy than what Ofgem considers to be the "typical home", your own yearly energy costs on a tariff priced at the maximum rates may be higher - or lower - than the annual figure from Ofgem.
Find out more in our guide to the Ofgem price cap.
Payments
Our Flexible tariff will have slightly different unit rates and standing charges based on your payment method. It's not a flat discount for Direct Debit customers (or a charge on non-Direct Debit customers) – it’s the typical savings an average home could see over a year on the cheaper Direct Debit dual-fuel rates.
If you change how you pay, our system will pick that up and adjust your rates automatically, so if you don’t have a Direct Debit right now, it’s super easy to access the cheapest prices. All you need to do is set up a Direct Debit online and we’ll do the rest.
Not having a Direct Debit creates us significantly more admin.
We don't think it's fair to make everyone cover that extra cost, so we do offer a cheaper rate for those who choose to pay by Direct Debit, which costs us less to manage.
If you're on a flexible rate, your energy price change from October depend on where you live and how you choose to pay. We will add the Flexible Octopus prices here when they are available. For now, check out how the Ofgem price cap varies based on region and payment method.
It costs us more to supply energy to some areas depending on things like proximity to generators, cost of maintaining local networks and more.
The same is true with different payment methods – for example, it costs suppliers more to administer and manage accounts that don't pay by Direct Debit, so Ofgem factors that into their price cap.
The price cap sets a maximum rate for:
Energy units: the price suppliers can charge variable tariff customers per unit of gas and electricity
Daily standing charges: the price suppliers can charge per day for ongoing costs, like paying the companies who manage distribution networks, operating costs, etc.
Ofgem have shared that on average - for customers paying by direct debit - the unit rates (inc. VAT) will be:
Electricity:
26.32 pence per kWh
54.83 pence daily standing charge
Gas:
7.97 pence per kWh
29.68 pence daily standing charge
Important: these are averaged figures from across all regions in the UK. As certain costs vary, e.g. what transmission network fees we pay in an area, the actual maximum unit rate varies depending on region. There are other factors too: different maximum rates for Economy 7 tariffs (which have a day and a night price) and prepayment meters.
You can see Ofgem's figures on the price cap standing charges and unit rates here.
Fixed tariffs
If you’re on a fixed tariff, the first thing to know is that the price cap doesn’t affect your current energy contract, although the VAT reduction to 0% does: we'll apply it on 1st October.
We’ll always email you in advance of your fixed tariff coming to an end.
If you’d like to confirm your current prices and contract dates, you can see them on your online account (scroll a little way down and look at the details below your property address) or on any PDF energy statement. It’s usually on the second page, near the top of the breakdown for your electricity and / or gas charges for the period.
Published on
Joe Richardson
Operations Director