Ofgem has announced a 4% rise in the energy price cap for the period of 1st October 2026 to 31st December 2026. This means the typical annual household bill will be around £1,723 a year. This rise is inclusive of the VAT cut announced by the UK Government earlier in the summer. Energy prices will be around 17% higher than they were in April as we head into the colder winter months.
The price increase comes as a result of continued challenges in the oil and gas markets due to the conflict in the Middle East.
The energy price cap is represented as an annual bill based upon 2500kWh of electricity and 9500kWh of gas usage per year. This is known as a Typical Domestic Consumption Value (TDCV). Most households are unlikely to be on a typical usage and the actual cost will vary depending on your consumption. Many households in Scotland are likely to have higher typical usage than the UK average due to our colder climate.
IMPORTANT! – Last quarter OFGEM reduced the TDCV value from 2700kWh of electric to 2500kwh and from 11500kWh gas to 9500kwh, meaning the representative value you may see compared to previous quarters can be misleading. We would urge everyone to compare unit rates and standing charges and avoid using the TDCV value for decision making. In Fife, average consumption can be around 33% more than the UK average.
The price cap is actually a cap on the tariff suppliers can charge you. This is the unit rate, the cost per kWh of energy you use and a daily standing charge.
Tariff Table
From 1st October the average Standard Variable Tariff in the Southern Scotland region (covering Fife) will be:
Please note that costs can vary by region and may vary slightly from what is represented below
Information is extracted from the Ofgem website here.
Direct Debit
Electricity
26.11p per kWh unit rate & 61.41p per day standing charge
Gas
7.87p per kWh unit rate & 29.89p per day standing charge
Prepayment Meter
Electricity
25.31p per kWh unit rate & 61.41p per day standing charge
Gas
7.57p per kWh unit rate & 29.89p per day standing charge
Standard Credit
Electricity
27.58p per kWh unit rate & 70.19p per day standing charge
Gas
8.29p per kWh unit rate & 37.50p per day standing charge
Comparison to previous price caps
Compared to the same period last year, prices will be more expensive. Using Typical Consumption Values by Ofgem can be misleading due to changes in how they represent this figure. While energy prices are increasing they are still below the peak of the energy crisis in 2022 where bills were typically around £2500. However, households could be paying up to twice as much as they were prior to the energy crisis for their energy costs.
Should I Switch?
Around 40% of households are currently on a fixed price deal, so are potentially shielded from this price cap increase. If you can get a fixed price deal it may be cheaper than the April energy price cap. Unfortuantly due to the situation in the Middle East, energy prices are once again affected. This is likely to have an impact on available fixed price deals and future price caps. We’d currently recommend checking out the Money Saving Expert guide which lists the pro’s and con’s of all currently available tariffs that are worth considering. As tariffs may only be available for a short space of time, it’s worth checking this guide to see if there’s a deal that’s right for you.
Get Advice
Are you worried about energy prices or debt? Our energy advisors can provide free and impartial advice to anyone in Fife. Get in touch to arrange a home visit or telephone advice appointment to see what you can do to save energy at home.
Our energy advisors can be contacted by:
- Calling 01592 807930
- Texting COSY then YOUR NAME to 88440
- Emailing info@cosykingdom.org.uk
- Request advice online