Energy price cap in London
From 1 October to 31 December 2026, a typical home in London paying by Direct Debit pays about £1,706 a year for gas and electricity under Ofgem’s price cap, or £142 a month. That’s £17 less than the Great Britain average of £1,723, and the 3rd cheapest of Great Britain’s 14 regions. Electricity costs 26.60p per kWh plus 42.92p a day; gas costs 8.15p per kWh plus 30.20p a day.
Facts checked: 31 October 2026 · Source: Ofgem · Next change: 1 January 2027 (announced 25 November 2026)
At a glance
A year for a typical home using gas and electricity.
Our calculation · Ofgem ratesCompared with the Great Britain average of £1,723.
Our calculationRank from cheapest to most expensive region.
Our calculationA year in electricity standing charges alone, before you use any energy.
42.92p a day · OfgemWhat would you pay?
Estimate your bill in London
Enter your yearly use from a bill or your supplier’s app. We’ve filled in Ofgem’s typical use.
Your estimate under the cap
At price cap rates for London, 1 October to 31 December 2026, paying by Direct Debit, before any discounts.
London rates against the average
| London | Great Britain average | |
|---|---|---|
| Electricity unit rate | 26.60p/kWh | 26.32p/kWh |
| Electricity standing charge | 42.92p/day | 54.83p/day |
| Gas unit rate | 8.15p/kWh | 7.97p/kWh |
| Gas standing charge | 30.20p/day | 29.68p/day |
| Electricity, typical year | £821 | £858 |
| Gas, typical year | £884 | £865 |
| Gas and electricity, typical year | £1,706 | £1,723 |
What happens next
Ofgem announces the price cap for January to March 2027 on 25 November 2026. Cornwall Insight forecasts a typical bill of about £1,999 a year across Great Britain, around 16% higher than now. That’s a forecast, not an Ofgem decision. If you’re thinking of fixing, compare any fixed deal with what the cap is expected to be: see fixed or variable?
Ways to pay less
- Pay by Direct Debit. Standard Credit, paying when the bill arrives, has a higher cap.
- Check the Warm Home Discount. £150 off your electricity bill in winter if you qualify.
- Look at your standing charge. In London it costs £156 a year for electricity and £110 for gas, whatever you use.
Common questions
What is the energy price cap in London?
From 1 October to 31 December 2026, paying by Direct Debit: electricity 26.60p per kWh and 42.92p a day; gas 8.15p per kWh and 30.20p a day (Ofgem).
How much is a typical energy bill in London?
About £1,706 a year, or £142 a month, for a home using 2,500 kWh of electricity and 9,500 kWh of gas, by our calculation from Ofgem’s rates.
Is energy cheaper in London than elsewhere?
London is the 3rd cheapest of Great Britain’s 14 regions for a typical home, £17 less than the Great Britain average.
When does the price cap change?
Every three months. The next change is on 1 January 2027, announced by Ofgem on 25 November 2026.