Overview
- The cap increases by 2% from £1,720 to £1,755 for a typical dual‑fuel direct‑debit household from 1 October to 31 December, with Ofgem reviewing rates quarterly.
- Roughly 21 million standard variable direct‑debit accounts plus additional standard credit and prepayment customers fall under the cap, while those on fixed deals are unaffected.
- Ofgem cited network cost changes and the expanded Warm Home Discount as drivers, with the scheme adding about £15 to a typical bill while providing £150 to 2.7 million more people.
- For the coming quarter, the typical annualized bill level is set at £1,707 for prepayment users and £1,890 for those paying on receipt of bill, with unit rates and standing charges varying by region and payment method.
- Ofgem’s Tim Jarvis urged households to consider fixed tariffs that could save more than £200 versus the new cap, as Cornwall Insight notes wholesale price volatility but still sees a conditional small fall in January 2026.