Energy Price Cap Rise: Bills to Increase by 28p from January
Energy price cap to rise by 0.2% this winter

Winter Energy Bill Increase Confirmed

Millions of households across Britain are set to face higher energy costs this winter after the regulator Ofgem announced an increase to the energy price cap. The change, which comes into effect as colder weather grips the nation, will see the cap rise by 0.2% for the period from January 1 to March 31, 2026.

This adjustment means a typical household paying for their gas and electricity by direct debit will see an annual increase of 28 pence. While this is a modest rise, it adds further pressure to budgets during the most expensive time of the year for energy consumption.

What You Will Pay for Electricity

For households on a default tariff, the new rates set by the energy price cap will mean paying an average of 27.69 pence per kilowatt hour (kWh) for their electricity. The daily standing charge, which is the fixed cost for being connected to the grid, will average 54.75 pence per day across the UK. These figures include VAT at the reduced rate of 5%.

What You Will Pay for Gas

For gas customers on a default tariff who pay by direct debit, the new cap sets the average rate at 5.93 pence per kilowatt hour (kWh). The daily standing charge for gas supply will be an average of 35.09 pence per day. This charge also includes the 5% VAT rate.

This announcement from Ofgem serves as a crucial reminder for consumers to stay informed about their energy bills and consider their options, especially during the high-usage winter months. Understanding the breakdown of unit rates and standing charges can help households manage their consumption and costs more effectively.