Ofgem Energy Price Cap Calculator 2026 – Fixed vs Variable Tariff

Updated 5 October 2026: Compare the current Ofgem October–December 2026 average Direct Debit price-cap rates with a fixed tariff using your own annual electricity and gas usage. This is a Great Britain comparison tool; Northern Ireland has a different energy market.

⚡ Ofgem Price Cap vs Fixed Tariff Calculator

Use your annual kWh consumption and the actual fixed-tariff rates you’ve been offered for a like-for-like estimate.

Current Ofgem GB average Direct Debit benchmark, 1 Oct–31 Dec 2026:
Electricity 26.32p/kWh + 54.83p/day standing charge. Gas 7.97p/kWh + 29.68p/day standing charge. Regional rates vary.

Your annual energy use

Your fixed tariff offer

Enter rates from the tariff quote itself. Check whether the quoted fixed rates already include VAT; consumer tariff quotes normally show the price you pay. Do not add VAT again to rates that already include it.
Included in the comparison only as an optional cost. Whether you actually pay an exit fee depends on when/how you leave the tariff.

Like-for-like annualised estimate

Current cap-rate estimate£0.00
Fixed tariff estimate£0.00
Difference£0.00

The £1,723 price cap is not a maximum household bill.

It is Ofgem’s annualised illustration for a typical dual-fuel Direct Debit household at benchmark consumption. Your bill depends on how much energy you use, your region, payment method, meter/tariff type and the applicable unit rates and standing charges.
VAT from 1 October 2026:

Qualifying domestic electricity in England, Scotland and Wales is temporarily zero-rated for VAT from 1 October 2026 to 31 March 2027. Domestic gas remains at 5%. Ofgem’s October–December average rates shown here already reflect that treatment, so this calculator does not add VAT again.
Official sources Ofgem price cap unit rates and standing charges → How the energy price cap works → Temporary 0% VAT on domestic electricity →
Important: This is an educational comparison, not energy or financial advice. It annualises the rates entered for easy comparison even though Ofgem resets the default-tariff cap every three months. A fixed tariff may last longer than the current cap period, so future variable rates are unknown. Check your supplier quote, regional Ofgem rates and contract terms before switching.

Rates checked: 5 October 2026 • Current cap period: 1 October–31 December 2026

What is the Ofgem energy price cap from October to December 2026?

For 1 October to 31 December 2026, Ofgem says the price cap is £1,723 a year for a typical household using electricity and gas and paying by Direct Debit, if those rates were sustained for a full year. That is 4% higher than the previous cap period.

The price cap does not mean your bill cannot exceed £1,723

This is one of the most important points to understand. Ofgem caps the rates suppliers can charge customers on standard variable/default tariffs, including unit rates and standing charges. It does not cap the total amount a household can spend. If you use more energy, your bill can be higher than the headline typical-household figure.

October–December 2026 average Direct Debit rates

Across England, Scotland and Wales, Ofgem’s average Direct Debit rates for this cap period are 26.32p per kWh for electricity with a 54.83p daily electricity standing charge, and 7.97p per kWh for gas with a 29.68p daily gas standing charge. Your actual capped rates depend on your region and payment method.

Why this calculator uses kWh rather than your monthly Direct Debit

A Direct Debit is a payment arrangement, not necessarily the cost of the energy you consumed that month. Suppliers may set monthly payments to smooth expected annual costs and account balances. For a meaningful tariff comparison, annual kWh consumption plus unit rates and standing charges are much more useful than multiplying a Direct Debit by 12.

Is electricity VAT really 0% this winter?

Yes, in Great Britain. The government introduced a temporary zero rate of VAT for qualifying domestic electricity supplied from 1 October 2026 to 31 March 2027 in England, Scotland and Wales. Domestic gas remains subject to the 5% reduced VAT rate. Ofgem’s published October–December rates already reflect this change.

Does the 0% electricity VAT apply to fixed tariffs?

The government says the temporary electricity VAT reduction also applies to households on fixed tariffs, including people who had already locked in their rate. Check your supplier’s bill and tariff information for how the change is displayed.

Should I fix my energy tariff?

No calculator can answer that with certainty because Ofgem resets the cap every three months and future wholesale prices and policy costs are unknown. A fixed tariff can provide price certainty, but compare its electricity and gas unit rates, both standing charges, contract length, exit fees and any other conditions against your current tariff. This calculator shows the arithmetic using the rates you enter; it does not forecast future energy prices.

Why your regional price cap may differ

Ofgem explains that unit rates and standing charges vary by region and payment method. The calculator therefore pre-fills the Great Britain average Direct Debit figures only as a benchmark. For the closest comparison, replace them with the relevant regional figures where appropriate and enter the exact fixed-tariff quote from your supplier.

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Important information

This tool is for households in England, Scotland and Wales. Northern Ireland has a separate energy market and the temporary electricity VAT treatment is also different. The annual figures are annualised comparisons of the rates entered, not forecasts that the October–December 2026 cap will remain unchanged for 12 months.