Energy bills: what's changing over the next year
Energy is changing faster than at any point since the 2022 crisis — new tariff rules, meter switch-offs, debt schemes and a wave of “smart” pricing. Some of it will save you money, some of it needs action from you, and some of it is still just announcements. Here’s what’s actually coming, sorted by how much it matters, with a plain label on what’s confirmed and what’s forecast.
The next price cap: announced 26 August
Confirmed: the current cap runs to 30 September 2026 (a typical household pays about £1,663 a year — the July rise was 13%). Ofgem will announce the October–December cap by 26 August 2026.
Forecast, not fact: Cornwall Insight — the forecaster that gets closest most often — expects the October cap to be broadly flat, around £1,654 for a typical household as of its early-July estimate. Forecasts move with wholesale prices, so treat that as a weather forecast, not a promise.
What to do with this: when the announcement lands, compare fixed deals against the new cap, not the old one. Our energy bill guide explains how the cap actually works — including why July’s headline numbers confused everyone (Ofgem also rebased what a “typical household” uses, so old and new figures aren’t like-for-like).
RTS meters: the one that needs action now
Confirmed, and urgent for those affected. The Radio Teleswitch Service — a decades-old broadcast signal that tells certain older electricity meters when to switch between peak and off-peak rates — is being switched off area by area. If you have storage heaters, Economy 7/10, or “Total Heating Total Control”, you might have one. Around 154,000 RTS meters were still left in January 2026, down from over 600,000 a year before — suppliers are working through them, but the signal in your area could go before they reach you.
If the signal goes first, your heating or hot water could run at the wrong times — or your off-peak rate could stop being applied. Contact your supplier and book a smart meter replacement now. Protections exist: your replacement tariff must leave you no worse off, and there’s £40 compensation per fuel if appointment standards are missed. But the protections are a consolation prize; the fix is the appointment.
The £150 Warm Home Discount: bigger, longer, mostly automatic
Confirmed. The Warm Home Discount reopens in October 2026, extended for five more years, still £150, and keeps its expanded eligibility — most households on means-tested benefits, with the discount applied automatically for the vast majority in England and Wales. Around six million households will get it. Full details, including the Scotland difference, in our help with energy bills guide.
Standing charges: trials, not revolution
Standing charges — the fixed daily fees costing a typical dual-fuel household about £315 a year — are the most complained-about line on any bill. Ofgem planned to make every supplier offer a low-standing-charge version of the price-capped tariff, then dropped the mandate after consultation. What’s actually happening is a one-year voluntary pilot, running since June 2026, with EDF, E.ON, Octopus and British Gas offering tariffs with much lower standing charges but higher unit rates.
Plain translation: these tariffs move money around rather than saving it overall. If you use very little energy — a small, well-insulated flat, or a rarely-occupied home — they can genuinely help. If you use average amounts or more, you’ll likely pay more. Do the sums on your own usage before switching, and expect a market-wide decision only after the pilot reports.
Smart tariffs: the quiet big one
Confirmed, dated, and almost nobody’s heard of it: the energy market is moving to half-hourly settlement, with suppliers required to be ready by late October 2026 and all meters migrated during 2027. Translation: once suppliers are settled half-hourly, they have a real financial incentive to offer everyone the kind of time-of-use tariffs currently aimed at EV owners — cheap overnight rates, free weekend hours, prices that dip when wind is plentiful.
Nothing is required of you, but the direction is clear: a smart meter becomes the ticket to the cheapest tariffs on the market. If you’ve been refusing one on principle, the principle is about to start costing money.
Energy debt relief: announced, not yet real
With household energy debt at record levels, Ofgem has designed a Debt Relief Scheme — in its consultation version, writing off up to £500 million of crisis-era debt for around 200,000 households on means-tested benefits, matched via DWP data. It was expected to launch in early 2026, but no final decision had been published when we checked in July 2026 — so we’re labelling this one “announced, not yet real”. If you’re in energy debt now, don’t wait for it: the help that already exists — mandatory affordable payment plans and hardship grants up to £1,700 — is live today.
Things you’ll read about that won’t change your bill soon
Zonal pricing is dead. After years of debate about charging different electricity prices by region, the government chose “Reformed National Pricing” instead — grid reforms with estimated savings of £20–40 a year by 2040. Nothing to do, nothing to expect soon.
The Warm Homes Plan puts serious money (£15 billion) into insulation and heat pumps through 2030 — that one is real and claimable now via grants and the heat pump scheme. The plan also shifted some policy costs off electricity bills from April 2026.
The switching rulebook stays friendly: the ban on suppliers reserving their best deals for new customers has been extended to at least March 2027 — so when you haggle, your own supplier’s best deal must be on the table for you too.
The two-line summary
Between now and next summer: check the new cap on 26 August, grab the Warm Home Discount if you qualify, and sort your meter if it’s RTS. Everything else — smart tariffs, standing charge reform, debt relief — is worth watching, and we’ll keep this guide updated as announcements turn into things you can actually claim.
Sources
- Ofgem — Changes to the energy price cap, 1 July to 30 September 2026
- Cornwall Insight — Default tariff cap forecasts
- gov.uk — Continuing the Warm Home Discount: government response
- Ofgem — Lower standing charge tariffs: next steps
- Ofgem — Radio Teleswitch (RTS) phase-out decision, March 2026
- Ofgem — Debt strategy: supporting a reduction in energy debt
- gov.uk — Warm Homes Plan (policy paper)
Just so you know: this guide is information and journalism, not financial advice, and we don't recommend specific financial products. Your circumstances are your own — if you need personal advice, speak to a suitably qualified adviser. Information was correct at the "last updated" date above but things change; always check the linked primary sources.