| Question | Answer |
| Why is the price cap changing from 1 October 2026? | The main factor behind the price increase is higher wholesale gas prices, with ongoing conflict in the Middle East contributing to volatility in global gas markets. Wholesale energy prices rose by around 11% during the period used to set the October prices. |
| What are the October 2026 price cap dates? | The prices set out in the October 2026 price cap are effective from 1 October 2026 to 31 December 2026. |
| Who does the price cap apply to? | The price cap applies to domestic customers on standard variable or default tariffs. Home Energy Fair Variable is a variable tariff, so its prices must remain within the relevant Ofgem price-cap limits. |
| Does the price cap apply to fixed tariffs? | No. The price cap applies to variable tariffs only. If you're on a fixed tariff, you may be paying a different amount to the price cap, in line with the fixed agreement you made at the time you began your tariff. |
| Can suppliers charge less than the price cap? | Yes. Ofgem sets the price cap as the maximum that can be charged on tariffs covered by it, but the cap is not a minimum. Suppliers can price below the capped level. Home Energy has previously priced some tariffs below the price cap. |
| Is it better to stay on the price cap or switch tariffs? | It could be cheaper to switch tariff or energy supplier depending on your own consumption and the tariffs available to you. When comparing tariffs, it is important to compare the unit rates and standing charges against your existing tariff, rather than comparing monthly Direct Debit amounts alone. |
| What happens if wholesale energy prices change? | Changes in wholesale energy prices can feed through into future price caps. Wholesale costs are one of a number of factors Ofgem considers when calculating the cap, alongside network, policy, operating and other costs. |
| Could ongoing events cause the October 2026 price cap to change before January? | The October price cap applies from 1 October to 31 December 2026. Changes in wholesale prices during this period would normally be reflected in a future price cap rather than changing the capped rates during the current cap period. |
| Will switching supplier affect the price cap? | The price cap applies to tariffs covered by it across domestic energy suppliers, so switching to another supplier's standard variable or default tariff does not remove the protection of the price cap. However, individual suppliers may price below the cap or offer other fixed or specialist tariffs. |
| Why are gas prices increasing more than electricity prices? | Most of the October price-cap increase is being driven by higher wholesale gas costs. At the capped level, gas costs at typical use are increasing by around 8%, while electricity costs remain broadly stable overall, helped by the removal of VAT from domestic electricity from 1 October. |
| Why hasn't my electricity price fallen by 5% if VAT has been removed? | Removing 5% VAT does not necessarily mean your final electricity rate will be 5% lower than before. Other parts of the cost of supplying electricity can increase or decrease at the same time. The VAT reduction is included in the new prices and helps offset increases elsewhere. |
| When does the 0% VAT rate on electricity apply? | VAT on domestic electricity is reduced from 5% to 0% from 1 October 2026 until 31 March 2027. You do not need to do anything for the reduction to be applied. Gas remains subject to 5% VAT. |
| Does the electricity VAT reduction apply if I'm on a fixed tariff? | Yes. The VAT reduction applies to domestic electricity bills, including customers on fixed tariffs, and will be applied automatically. |
| Why is my personal increase different from 4%? | The 4% figure is based on a typical dual-fuel household paying by Direct Debit at Ofgem's typical consumption. Your own change depends on how much energy you use, where you live, your meter type, payment method and tariff. Your personalised Home Energy price change notification shows your new rates and estimated annual cost based on your own account. |
| Why is my Home Energy electricity price increasing if the electricity price cap is broadly stable? | Home Energy electricity prices have been significantly below the capped level. Continued pressure on wholesale energy costs means we can no longer sustain the current discounted level, so from 1 October our electricity unit rates will move in line with the new capped rates. Electricity standing charges will reduce, and the removal of VAT from domestic electricity also helps offset some of the increase. |
| Why is my Home Energy electricity increase larger than the headline 4% price-cap increase? | The 4% headline figure relates to a typical dual-fuel household at Ofgem's typical consumption and reflects changes across both gas and electricity. Home Energy electricity prices were previously priced significantly below the capped level, so moving those rates to the new capped level results in a larger percentage increase for electricity-only customers. |
| Will my Home Energy prices always be set at the price-cap maximum? | Not necessarily. The price cap is a maximum rather than a target price. Home Energy may price below the cap depending on market conditions, tariff design and the costs of supplying energy. Your price change notification confirms the rates that will apply to your account. |
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