What is the new UK energy price cap amount and when does it take effect?

The new UK energy price cap will rise by 4% to £1,723 ($2,348) per year for households on variable tariffs, effective from October. This represents a £60 increase from the previous cap that applied from July to September.

Which households will be affected by the price cap increase and how many are expected to be impacted?

Around 22 million households on variable tariffs will be affected by the price cap increase, as the cap covers approximately 65% of customers in the UK.

British Energy Price Cap to Rise 4% as Iran War Pushes Up Costs

Aug 25, 2026

Ofgem announced a 4% increase in the UK domestic energy price cap starting in October, raising the limit to £1,723. The hike is driven by high international gas prices exacerbated by the conflict in Iran, impacting 22 million households.

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British Energy Price Cap to Rise 4% as Iran War Pushes Up Costs

British Energy Price Cap to Rise 4% as Iran War Pushes Up Costs

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