UK Energy Price Cap Climbs to Three-Year High of £1,723

Ofgem confirmed a 4% rise in the energy price cap — the maximum suppliers can charge — to £1,723/year for a typical dual-fuel household from October to December 2026, a three-year high. After July's 13% jump, both increases stem from global market disruption tied to the Iran war and the Strait of Hormuz closure. A 5% VAT cut on electricity trims roughly £45 from bills.