Will my UK home energy bills drop after Ofgem’s October review?
Ofgem’s October price cap review can change what many households pay on standard variable and default tariffs. If your bills won’t fall as much as you hoped (or could rise), comparing the whole market could help you find a better deal for your home.
- See what the October price cap does (and doesn’t) mean for your direct debit
- Check if switching could beat the cap with fixed or tracked deals
- Whole-of-market comparison for home energy (gas, electricity or both)
Comparison is free to use. Your actual bill depends on where you live, how much energy you use, and your tariff type.
Compare whole-of-market home energy deals after the October review
The Ofgem price cap review in October can change the unit rates and standing charges on standard variable and default tariffs. But it doesn’t automatically put you on the cheapest option available. If you want more certainty, or you think you’re paying too much, it’s worth checking what’s available across the market.
Good to know: The price cap is not a cap on your total bill. It limits the maximum rates suppliers can charge per unit of energy (plus standing charge) for typical payment methods on default tariffs. Your bill still depends on how much you use.
What you’ll need (takes 2–3 minutes)
- Your postcode (to match your regional network charges)
- Whether you want gas, electricity or dual fuel
- Your current supplier and tariff type (if you know it)
- Estimated monthly usage or spend (a recent bill helps, but isn’t essential)
Prefer to read first? Jump to what changes in October or tariff types to understand your options.
Will UK home energy bills drop after Ofgem’s October price cap review?
They might — but it depends on your tariff and how you pay. The October review sets new cap levels for a future period. If the cap is lower than the previous period, households on default/standard variable tariffs may see lower unit rates and/or standing charges. If the cap is higher, the opposite may happen.
Even if the cap falls, many people don’t see a neat “drop” in their direct debit straight away because suppliers set direct debits to cover annual usage, seasonal peaks (winter), and any account balance (credit or debt).
If you’re on a standard variable tariff
Your rates should adjust in line with the new cap for your payment method and region. This is where the October review matters most.
If you’re on a fixed tariff
Your rates normally stay the same until the fix ends. You may still want to compare to see if switching now (or lining up a switch) makes sense.
If you use more (or less) energy
Your total bill can rise even when rates fall. Usage, insulation, heating habits, and home size often matter more than the headline cap.
Practical takeaway: Treat the October price cap review as a prompt to compare home energy deals, not a guarantee your household bill will fall.
What exactly happens in Ofgem’s October review?
Ofgem updates the price cap periodically using a methodology based on wholesale energy costs, network costs, policy costs, operating costs, and supplier margins. The October review updates the cap level for the next cap period, affecting households on default tariffs.
What the price cap changes
- Maximum unit rates (p/kWh) and standing charges for default tariffs
- Different rates by region and payment method (e.g. Direct Debit vs prepay)
- What suppliers can charge for typical consumption on capped tariffs
What it doesn’t change
- Your home’s energy usage (this is the biggest driver of your bill)
- Your fixed tariff rates until your contract ends
- Whether you’re on the cheapest deal available for your situation
Why your Direct Debit might not match the headline cap movement
Seasonal smoothing
Suppliers often set monthly payments to cover higher winter usage, so payments can stay the same even when rates change.
Credit/debit balance
If you built up debt, your supplier may keep payments higher to recover it. If you’re in credit, you may be able to request a reduction.
Meter reads & estimates
Estimated readings can skew your account. Providing a current meter reading can help your supplier adjust your payments accurately.
How to save money after the October price cap update
If you want lower costs or more predictability, focus on what you can control: your tariff choice, your payment method, and your usage.
- Check what you’re on now: standard variable, fixed, tracker, or prepayment. If you don’t know, look at your latest bill or online account.
- Compare whole-of-market deals: include fixed and variable options, and pay attention to unit rates, standing charges, and any exit fees.
- Use realistic usage: if you have a smart meter, use actual figures; otherwise use annual kWh from your bill for the most accurate comparison.
- Decide what matters most: the lowest cost, price certainty, green options, or flexible terms.
- Switch at the right time: if you’re in a fix, check exit fees and end date—often you can line up a new deal near the end of your contract.
Tip: Standing charges can make a big difference for low-usage homes (e.g. small flats). If you’re a higher-usage household, unit rate usually matters more.
Tariff types explained (and how the October review affects each)
Understanding your tariff helps you predict whether you’ll see any change after Ofgem’s October review.
| Tariff type | Does the October price cap review change it? | Best for | Watch-outs |
|---|---|---|---|
| Standard Variable / Default (price-capped) | Yes. Rates can change in line with the cap level for your region and payment method. | Flexibility (no fixed end date), people not ready to commit. | Not always cheapest; rates can move up as well as down. |
| Fixed | Not usually during the fixed period. Your rates stay the same until the fix ends. | Budgeting and price certainty. | Exit fees may apply; you might miss out if market rates fall. |
| Tracker / Variable (non-default) | It depends. Some trackers follow market indices or supplier-set formulas, not the cap directly. | People comfortable with movement in rates. | Prices can rise quickly; check how rates are calculated. |
| Prepayment (price-capped) | Yes. Prepay has its own cap level and can change at the October update. | Control over spending; some households prefer pay-as-you-go. | May be more expensive than Direct Debit depending on cap level and offers; check eligibility to switch meter type if needed. |
If you’re not sure what you’re on, use the comparison form above and we’ll help you identify options available for your home and postcode.
Regional differences: why your October bill change might not match your neighbour’s
Energy costs vary across Great Britain because of regional network charges and other factors. The price cap is calculated with regional elements, which is why two households with similar usage can see different standing charges and unit rates.
What can vary by region
- Electricity distribution network charges
- Standing charges (particularly electricity)
- Available tariffs and discounts by supplier
What to do about it
Use a postcode-based comparison so you’re looking at deals and rates for your actual region.
Compare by postcodeCommon mistakes when the October price cap changes
Assuming the cap is the cheapest
The cap limits default tariffs; it doesn’t guarantee best value. Fixed deals can sometimes beat it (depending on market conditions and your region).
Comparing by monthly Direct Debit only
Monthly payments can be “smoothed”. Use annual cost based on your kWh usage for a fair comparison.
Ignoring standing charges
Two deals can have similar unit rates but very different standing charges—important for low-usage homes.
Not checking exit fees
If you’re mid-fix, exit fees could outweigh any short-term saving. Compare with fees in mind.
Using outdated meter readings
If your usage estimate is wrong, your comparison will be too. Submit a fresh reading where possible.
Waiting “for the next review”
If a better tariff is available now, delaying can mean paying more for months. Compare and decide based on your risk and budget.
FAQs: Ofgem October review and UK household bills
Does the Ofgem price cap apply to everyone?
No. It mainly applies to households on default or standard variable tariffs (including some prepayment tariffs). If you’re on a fixed deal, your rates usually won’t change until your fixed term ends.
If the cap goes down, will my monthly direct debit go down straight away?
Not always. Suppliers may keep direct debits steady to cover winter usage or to recover debt. If you’re in credit and your usage has dropped, you can ask your supplier to review your direct debit.
Can I switch energy supplier around the October review?
In many cases, yes. If you’re on a variable tariff, you can usually switch without exit fees. If you’re in a fixed tariff, check your end date and any exit fee before switching.
Is a fixed tariff always better than the price cap?
Not necessarily. A fix can offer certainty, but it depends on the unit rates, standing charges, contract length, and your usage. Comparing whole-of-market options helps you see whether you’d likely pay less overall.
Do I need a bill to compare?
A bill improves accuracy (annual kWh for gas and electricity), but you can still compare using an estimate. If you have a smart meter, using recent usage gives the most realistic results.
Is this page about business energy?
No—this guide and the comparison form are for UK home energy only.
Why households use EnergyPlus (whole-of-market comparison)
Whole-of-market visibility
Compare a broad range of home energy tariffs, including fixed and variable options, to find what fits your household.
Postcode-accurate results
See deals relevant to your region—important when standing charges and network costs vary across the UK.
Clear decision factors
Focus on what changes your annual cost: unit rates, standing charges, contract length, and any exit fees.
What people say
“I didn’t realise the price cap wasn’t automatically the best deal. The comparison made it clear what I’d pay over the year.”
“Quick to use and the results were easy to understand. Helped me decide between a fix and staying variable.”
“The postcode-based view was useful—standing charges were different to what I’d seen elsewhere.”
Trust note: Always check tariff terms before switching, including contract length, exit fees, and eligibility (for example, for certain meter types).
Ready to see if you could pay less after October?
Use EnergyPlus to compare whole-of-market home energy deals for your postcode. Whether the Ofgem October review pushes prices up or down, you’ll know what options are available for your household.
For UK households. No obligation to switch.
Fast checklist
- Know your postcode
- Pick gas, electricity, or dual fuel
- Compare using annual kWh if you can
- Check exit fees before switching
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