
The energy price cap rises to £1,723 from 1 October 2026. Here are the unit rates and standing charges behind it, why it went up, what the electricity VAT cut changes, and what Cornwall Insight and E.ON Next forecast for January 2027.

VAT on domestic electricity drops from 5% to 0% from 1 October 2026, and single bus fares outside London are capped at 2 pounds from January 2027. What the package actually saves a typical household, who is excluded, and what was not announced.

Ofgem confirmed the July 2026 energy price cap at £1,862 per year, a 13.5% rise on April’s £1,641. Why the cap landed where it did, what changes for your bill, and the fixed-rate tariffs already pricing below it.
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