Energy Price Cap January 2027: Forecasts & What It Means
The current Ofgem price cap, the latest forecasts for January 2027, and what you can do about it.
The Price Cap Right Now
From 1 October 2026 to 31 December 2026, the Ofgem price cap for a typical dual-fuel household paying by Direct Debit is £1,723 a year — about £144 a month. That’s up 4% on the previous quarter.
Gas bills up around 8%; electricity broadly flat after VAT was removed from domestic electricity.
Source: Ofgem
January 2027 Price Cap Forecasts
Ofgem will confirm the cap for January – March 2027 in late November 2026. Until then, these are the latest independent forecasts for a typical household:
| Forecaster | Annual bill | Change | Per month |
|---|---|---|---|
| EDF 27 Sep 2026 |
£2,165 | +26% | +£37 |
| Uswitch (average of supplier forecasts) 27 Sep 2026 |
£2,117 | +23% | +£33 |
| Cornwall Insight 30 Sep 2026 |
£1,999 | +16% | +£23 |
Forecasts change as wholesale prices move and are not guaranteed. The monthly figure is the forecast increase for a typical household compared with today’s cap.
What this could mean for you: if forecasts are right, a typical household on a variable tariff could pay £69–£111 more over January to March alone.
Calculate Your Own Bill →Why Prices Are Going Up
- Wholesale gas prices have risen sharply because of the conflict in the Middle East, which has disrupted global gas supplies.
- European gas storage is around 65% full, well below the usual level for this time of year (Cornwall Insight).
- Ofgem said wholesale prices rose about 11% in the three months used to set the October cap.
Price Cap History
| Period | Typical annual bill | Change |
|---|---|---|
| October – December 2026 (now) | £1,723 | +4% |
| July – September 2026 | £1,663 | +1.3% |
| April – June 2026 | £1,641 | -7% |
How to Protect Yourself From the Next Rise
- Look at fixing. A fixed tariff locks your rates, so a cap rise won’t hit you until the fix ends. Compare the fixed price against the forecasts above. Our guide to fixing.
- Submit a meter reading just before the cap changes so you aren’t billed at the new rate for energy you used before it.
- Check your Direct Debit covers your usage, so you aren’t hit with a big catch-up bill in spring.
- Take free credit where you can. Switching to Octopus through a referral link gives you £50 account credit.
Get a no-obligation quote. Enter your postcode to compare Octopus fixed and variable prices with what you pay now. Switch through our link and you’ll get £50 credit.
Get an Octopus Quote →Price Cap FAQs
What is the energy price cap?
The price cap is set by Ofgem every three months. It limits the unit rates and daily standing charges suppliers can charge on standard variable (default) tariffs in England, Scotland and Wales. It does not cap your total bill — use more energy and you pay more.
What is the price cap for October – December 2026?
£1,723 a year for a typical dual-fuel household paying by Direct Debit, up 4% on the previous quarter.
When will Ofgem announce the January 2027 price cap?
Ofgem is expected to announce the cap for January – March 2027 in late November 2026. We’ll update this page as soon as it’s confirmed.
Does the price cap affect fixed tariffs?
No. If you’re on a fixed tariff, your unit rates and standing charges are locked until the fix ends, whatever happens to the cap. That’s why many people look at fixing before a forecast rise.
Why are energy prices going up?
Wholesale gas prices have risen sharply because of the conflict in the Middle East, which has disrupted global gas supplies. European gas storage is around 65% full, well below the usual level for this time of year (Cornwall Insight). Ofgem said wholesale prices rose about 11% in the three months used to set the October cap.