Prices and the price cap
The energy price cap now: what it means for Octopus customers
The current Ofgem price cap, what it limits, and how it affects Octopus Flexible, fixed and smart tariffs, updated from Ofgem’s published figures.
Edited by Rob Gibbs. Published: . Guidance reviewed: .
Short answer
Ofgem’s price cap limits the unit rate and standing charge that suppliers can charge on standard variable tariffs such as Flexible Octopus. It does not cap your total bill, and it does not apply to fixed or most smart tariffs. The current figure below updates from Ofgem’s published data.
The price cap right now
For Oct - Dec 2026, the cap for a typical household paying by Direct Debit is £1,723.00 a year.
What the cap actually limits
The headline is a yearly figure for a typical household, but what is capped is the unit rate per kWh and the daily standing charge. Use more than the typical household and you pay more; use less and you pay less. The rates also differ by region and payment method.
Which Octopus tariffs it covers
The cap sets a ceiling on default tariffs:
- Flexible Octopus, the standard variable tariff: capped, and often priced just below the cap.
- Fixed tariffs: not capped. The price is set for the term.
- Agile, Tracker and other smart tariffs: priced under their own terms. Some include their own caps.
Fix now or wait?
A fix is worth it if its full annual cost, including standing charges and any exit fee, beats what you expect Flexible to cost over the same period. Nobody can promise where the cap goes next, so compare the actual quotes rather than headline forecasts.
Questions people ask
Does the price cap limit my total bill?
No. It limits the unit rate and standing charge. Your bill still depends on how much energy you use.
Is Flexible Octopus always below the cap?
It cannot go above it. Each regional Flexible page shows how it has compared with the cap month by month.
Tariffs in this guide
Related guides
- Octopus account in credit or debit: what it meansWhat it means when your Octopus account is in credit or debit, when to ask for a refund and when to change your Direct Debit instead.
- Your fixed tariff is ending: what to do and whenThe 49-day exit-fee window, the 45-day point when Octopus shows your options, and what happens if you do nothing when a fix ends.
- How to switch to Octopus Energy: steps and timingsWhat happens when you switch to Octopus Energy, how long it takes, when you can leave a fixed deal without a fee and what to do on switch day.
- How to change tariff as an existing Octopus customerWhen and how existing Octopus customers can move tariff, the 45-day rule for fixed deals, and what to check before choosing a smart tariff.
- Free electricity from Octopus: how the sessions workHow Octopus’s power-up sessions, Postcode Power Ups and Agile negative prices give you free or cheap electricity, and what you need to join.
- Octopus Charge Pack: the home battery add-on explainedWhat Octopus Charge Pack does with your home battery, which tariffs and batteries it works with, what you earn and who should skip it.
Primary sources
- Energy price cap and standing charges explained — Ofgem; checked 2026-08-24. What the cap covers, how it is calculated, and why it is not a household bill limit.
- Domestic energy supply terms and conditions — Octopus Energy; checked 2026-08-24. General domestic tariff, meter, pricing, switching and referral terms.