Energy price cap 1 January 2027: what to do before it changes

Ofgem announces the next energy price cap by 25 November 2026, and it applies to bills from 1 January 2027. Nobody can tell you the number today, and any article that does is guessing. What you can do now is get your account in a state where the change cannot cost you.

What the cap actually is

The price cap limits the rate per unit of gas and electricity and the daily standing charge on a standard variable tariff in Great Britain. It does not cap your bill. Use more, pay more. Fixed tariffs sit outside it, which is why the cap matters most if you are on a variable tariff, or if your fix is about to end.

The cap is reset every three months. The current period runs from 1 October to 31 December 2026, and includes the cut in VAT on household electricity to 0% (see our guide to checking your bill got the VAT cut).

Why the 31 December reading matters

The new rates start on 1 January. If your supplier estimates your usage across the changeover, it has to split the bill between the old and new rate. With an estimate, that split is a guess, and a guess can land in the supplier's favour.

A real reading removes the guess:

1. Take a photo of your meter on 31 December or 1 January. Include the date, the meter number and the display in one shot.
2. Submit it to your supplier through the app, online account or by phone, and keep the confirmation.
3. Smart meter? Check the supplier is actually receiving readings. Smart meters that stopped reporting are a common source of estimated bills. If yours has, you are entitled to ask for it to be fixed.

Do not treat this as a ritual that matters every day of the year. It matters at the changeover.

Check your direct debit

A cap change is when suppliers recalculate monthly payments, and recalculation is when overpayment creeps in. Ask yourself two questions in January:

• Does the monthly amount match my real use? If you pay £140 and use £95 worth, the difference is sitting in your supplier's account.
• Is there a credit balance? You can ask for it back. We explain how, and the deadline Ofgem holds suppliers to, in our guide to claiming back an energy credit balance.

Look for back-billing and errors

Winter is when a wrong estimate or a catch-up bill hurts most. Under Ofgem's rules, suppliers generally cannot bill you for energy used more than 12 months ago if they were at fault for not billing you correctly. Our back-billing guide has the conditions. If your bill looks wrong at any point, the energy bill complaint tool helps you build the case.

If your supplier gets it wrong

1. Complain in writing using the word "complaint", quote the figure that is wrong, and say what correction you want.
2. Give the supplier 8 weeks. That is the window in the energy sector.
3. Escalate free to the Energy Ombudsman after 8 weeks, or straight away if you receive a deadlock letter. Ofgem regulates suppliers but does not settle individual disputes. The response deadline calculator works out your date, and the ombudsman finder confirms the scheme.

Supplier-specific routes are on our British Gas, EDF, E.ON, Scottish Power and Octopus Energy pages.

Where to check the announcement

When Ofgem publishes the new cap, read the figure on Ofgem's own price cap page rather than a headline. The unit rate and standing charge differ by region, and the "typical household" figure is an illustration, not what you will pay.

Got a bill that does not match your meter? Start a complaint and we will draft the letter, with the right ombudsman and dates named in it.