Household energy bills rose by 4% from 30 September 2026, taking a typical household to £1,723 a year, Ofgem announced on 26 August1. The regulator's price cap sets the maximum a supplier can charge a typical dual-fuel household on a default tariff1.
The rise splits sharply between the two fuels. Typical household gas bills are 33% higher than in April, some £200 a year, while electricity bills have risen only 4%, according to analysis by the thinktank Nesta cited by Carbon Brief2. National Energy Action said the increase takes prices to a three-year high and that over seven in 10 fuel-poor households heat with gas1.
Wholesale gas prices have averaged 189p per therm in September 2026 to date, their highest level since the global energy crisis in 2022, up from an average of 90p per therm from 2023 until the start of this year and 134p per therm since war broke out in the Middle East in March2. Carbon Brief's analysis found wind and solar generated a record 41% share of UK electricity in 2026 to date, against 25% from gas, avoiding gas imports worth £5.9bn since the start of the Hormuz crisis in February 20262.
"the link between electricity and gas prices has already begun to break"
Energy secretary Miatta Fahnbulleh told the Labour party conference that bills were high because the UK is "exposed to global fossil-fuel markets", and prime minister Andy Burnham said he had asked her to speed up breaking the link between power prices at home and the international gas market2.
| Measure | Change |
|---|---|
| Typical household bill from 1 October | £1,723 a year, up 4%1 |
| Typical gas bill versus April | Up 33%, about £200 a year2 |
| Typical electricity bill versus April | Up 4%2 |
| Forecast cap, January 2027 | £1,999 a year, up 16% on October, a rise of £2763 |
The £1,723 figure rests on revised typical domestic consumption values: 2,500 kWh of electricity and 9,500 kWh of gas a year, down from 2,700 kWh and 11,500 kWh, which Ofgem attributes to lower consumption through rationing and energy efficiency measures1. That means the headline number describes a household using less energy than before, not only a change in unit rates1.
Why it matters for households
The gap between gas and electricity is the practical story. A home heating with gas carries most of the increase, while a home using electricity for heat or driving sees a much smaller rise, and Carbon Brief notes electric cars are up to nine times cheaper to drive than petrol or diesel models, with diesel at record levels of around £2 per litre2. How far a household is exposed to gas therefore shapes its energy independence more than the headline percentage suggests. The standing charge and the wholesale component behind these figures are set out in the guide to what makes up an energy bill.
Debt is the other pressure point. National Energy Action said total energy debt stands at £6 billion and has grown every quarter since autumn 2022, and called for a Debt Relief Scheme and a tiered Warm Homes Discount1. It described the removal of VAT from electricity bills as welcome but insufficient for the most vulnerable households1.
What happens next
Cornwall Insight forecasts the cap will rise 16% in January 2027 to £1,999 a year for a typical dual-fuel household, an increase of £276 and the largest since January 2023, driven by Middle East conflict disrupting gas supplies3. Ofgem sets the wholesale part of the cap from a fixed observation window, which Energy Live News reports is nearly halfway through, making a further increase almost certain, though the size depends on how the US-Iran conflict develops3. Carbon Brief reports that if Europe enters spring 2027 with depleted gas storage, more gas will need to be bought in warmer months to rebuild stock, pushing prices up further3.
Sources3 cited
- Price cap rise: low-income and vulnerable households need a proper ‘breathing space’ on energy bills and debt - National Energy Action (NEA), nea.org.uk
- Analysis: Wind and solar save UK from gas imports worth £5.9bn during Hormuz crisis - Carbon Brief, carbonbrief.org
- Energy bills set to increase by £276 amid Burnham's GB Grid plans - Energy Live News, energylivenews.com