Energy Price Cap Rises 4 Percent on October 1

The energy price cap will increase by 4 percent on October 1, raising the annual cost for a typical household paying by direct debit from £1,663 to £1,723. Monthly spending is expected to climb from £109 in September to £145 in October, driven by both the higher rates and increased winter energy consumption.

Uswitch warns that more than four million households lacking smart meters must submit meter readings by October 1. This action prevents energy suppliers from estimating usage, which could result in customers being charged the new, higher rates for energy consumed before the price hike.

Further increases are forecast for January 2027, with the price cap predicted to reach £2,117, representing a 23 percent jump from October levels. To mitigate these costs, Uswitch recommends comparing tariffs or switching to fixed deals, noting that Fuse Energy currently offers an 18-month fixed tariff at £1,688 per year.