The UK's energy regulatory body, Ofgem, has announced that the energy price cap will increase by 0.2% from 1st January 2025. This means that the typical annual household dual-fuel energy bill will rise from £1,755 to £1,758, an annual increase of around £3 for the average household.
The latest energy price cap figure covers the period from 1st January 2026 to 31st March 2026 and will mean the average dual-fuel household will pay around £0.25p per month more for their energy. While the prospect of another rise will be disappointing for many, when adjusted for inflation, the new cap is 2% (around £37) lower than the same period in 2025.
Tim Jarvis, Director General of Markets at 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.
"While wholesale energy costs are stabilising, they still make up the largest portion of our bills which leaves us open to volatile prices. That’s why we’re working with government and industry to boost clean energy and reduce our reliance on international sources we can’t control".
What is the energy price cap?
The energy price cap was introduced by Ofgem to control the maximum amount that energy providers are allowed to charge consumers for each unit of gas and electricity. Ofgem calculates the price cap every three months and takes into account the cost of VAT, wholesale energy prices and the cost to provide energy. It then generates an annual figure based on the average dual-fuel household that pays via direct debit.
The energy price cap is based on the average dual-fuel household bill and how much you will actually pay will vary depending on how much energy you use.
Energy price cap figures 2024-2026
Below, we provide a brief history of the energy price cap figures going back to January 2024.
| Date Energy Price Cap is effective from | Energy Price Cap |
| 1st January 2024 | £1,928 |
| 1st April 2024 | £1,690 |
| 1st July 2024 | £1,568 |
| 1st October 2024 | £1,717 |
| 1st January 2025 | £1,738 |
| 1st April 2025 | £1,849 |
| 1st July 2025 | £1,720 |
| 1st October 2025 | £1,755 |
| 1st January 2026 | £1,758 |
Energy price cap history
The graph below shows the fluctuations in the energy price cap since January 2024 and also provides the latest prediction for the energy price cap for April 2026.
How much will I pay for energy under the new price cap?
The following table shows how much you can expect to pay for each unit of gas and electricity from 1st January 2026. The figures will vary depending on where you live in the UK. Remember, the amount you pay under the new price cap will be based on your energy usage and the charges stated below, assuming you pay by direct debit.
| Current energy price per unit
(1st October - 31st December 2025) |
New energy price per unit
(1st January - 31st March 2026) |
|
| Electricity | Daily Standing charge: 53.68p
Unit price per kWh: 26.35p |
Daily Standing charge: 54.75p
Unit price per kWh: 27.69p |
| Gas | Daily Standing charge: 34.03p
Unit price per kWh: 6.29p |
Daily Standing charge: 35.09p
Unit price per kWh: 5.93p |
(Source: Ofgem)
What will happen to the energy price cap in the future?
Major energy suppliers now provide energy price cap forecasts that stretch as far as the end of 2026. Current long-range forecasts from major suppliers suggest relative stability or minor fluctuations after the July drop, but with a high degree of caution. The low confidence ratings attached to these predictions underscore the ongoing volatility in global energy markets. Geopolitical tensions, unexpected weather patterns, or changes in global supply and demand can rapidly alter wholesale prices, making long-term forecasting extremely challenging.
| Source | Predicted Annual Cost (£) from April 2026 | Confidence Level (where stated) | Date of Forecast |
| British Gas | £1,845 | Very Low | 18th November 2025 |
| E.ON Next | £1,797 | Low | 21st November 2025 |
| EDF | £1,841 | N/A | 21st November 2025 |
Is now a good time to switch to a fixed energy tariff?
You need to consider what is important to you. The energy price cap changes every three months, while fixed deals typically last 12 or 24 months. There is a danger that should you fix, a better deal may be just around the corner. The real benefit to fixing your energy deal is the assurance that you know exactly what you will be paying for your energy over a set period. While better deals could come to market during your fixed period, you are protected should there be a sudden surge in energy prices.
When discussing the latest Ofgem energy price cap figures for January 2026, Tim Jarvis, Director General of Markets at Ofgem, said: "Look at different tariffs and choose what’s right for you or change the way you pay to Direct Debit or smart pay-as-you-go. Prepayment remains the cheapest way to pay, and these customers are already saving around £47 on average".
Looking at the best fixed-rate deals on the market right now, you could make a saving of around 15-20% when compared to the current energy price cap figures (£1,755 - October to December 2025). We provide a roundup of the best fixed-rate tariffs on the market in our article 'What is the cheapest fixed price energy tariff? - Best deals compared'.
What to do if you're struggling to afford your energy bills
Your energy supplier may be able to help you arrange an affordable repayment plan if the cost of energy is becoming overwhelming, so it is best to contact them as soon as possible. We provide some tips if you are struggling to afford your energy bills in our article 'How to save money on your energy bills'.
There are also a number of grants and schemes available for those who are most vulnerable. More information and help on the cost of living can be found in our Cost of Living guide.
MTTM AI (beta) 
