Electricity to hit 26.32p/kWh as price cap rises 4% in October

Ofgem's price cap rises 4% from 1 October to 31 December 2026, pushing average electricity to 26.32p per kWh with a 54.83p daily standing charge. For fleets running home or depot charging on domestic-style tariffs, that lands squarely in Q4 - budget for it now rather than at year-end reconciliation. (Ofgem) THRIVE's real cost to charge data compares home charging with the HMRC advisory electric rate.

Ofgem points to higher wholesale gas prices as the driver, without specifying a cause - a reminder that EV running-cost advantages are hostage to gas markets as much as petrol is to oil. A reported VAT change on electricity bills for October to March 2027 has circulated alongside this cap rise, but that's a separate tax policy matter and needs confirming against its own source before fleets bank the saving. Ofgem will confirm the next cap, for January to March 2027, by 25 November 2026. (Ofgem)

Why this matters: Re-run your pence-per-mile comparisons for Q4 using 26.32p per kWh, especially for fleets reimbursing drivers on home-charging schemes tied to the cap. Don't factor in the VAT change until it's verified separately - the saving isn't as clean as it looks once the standing charge is accounted for either way.