The energy bill price cap will rise as more and more Brits face fuel poverty.
Energy bills will rise (Image: Getty)
Energy bills will rise for millions of UK households in January as industry regulator Ofgem announces a rise in gas and electricity costs. The quarterly price cap will increase by 0.2% a year for the average annual dual fuel energy bill. Currently, this figure stands at £1,755, but it will go up to £1,758 for the period covering January to March.
Ofgem explained: “From 1 January to 31 March 2026 there will be a small monthly increase of 28 pence on the price of energy for a typical household who use electricity and gas and pay by Direct Debit.” When adjusting for inflation, the cap is actually 2%, or £37 – lower than January to March of this year.
The cap is 2% when adjusted for inflation. (Image: Getty)
Those on a standard variable tariff and paying by Direct Debit will pay on average 27.69p per kilowatt hour (kWh).
The daily standing charge is 54.75p per day – based on the average across England, Scotland and Wales and includes VAT at 5%.
Ofgem said wholesale prices were currently stable and had fallen by 4% over the past three months, but conditions remain “volatile”.
Tim Jarvis, director general of markets for Ofgem, said: “While energy prices have fallen in real terms over the past two years, we know people may not be feeling it in their pockets.
“The price cap helps protect households from overpaying for energy. But it’s only a safety net and there are practical ways that customers can pay less for their energy.
“While wholesale energy costs are stabilising, they still make up the largest portion of our bills which leaves us open to volatile prices.”
This winter, bills are expected to stay roughly 50% higher than before the war in Ukraine caused energy prices and the cost of living to spike.
