Energy price cap will rise by 0.2% from January

SnowMan

Here is the OFGEM announcement for the price cap from 1st January 2026 to 31st March 2026

https://www.ofgem.gov.uk/press-release/energy-price-cap-will-rise-02-january

The price cap information by region is in the link below. 0.2% is the headline figure but the change will depend on fuel mix and usage. The gas unit rate is reducing by about 5.6% on average. But standing charges for gas and electricity and the electricity unit rate are going up.

https://www.ofgem.gov.uk/information-consumers/energy-advice-households/get-energy-price-cap-standing-charges-and-unit-rates-region

edit: MSE news article on this

https://www.moneysavingexpert.com/news/2025/11/martin-lewis-energy-price-cap-rise-january/ 

MattMattMattUK

Basically a rounding error, but will almost certainly induce a huge number of tantrums.

superkoopauk

Well elec only customers are seeing a 4.4% increase probably thanks to all these policy changes

Also standing charges up by approx 1p on each fuel - will annoy the low users

SnowMan

MattMattMattUK said:

Basically a rounding error, but will almost certainly induce a huge number of tantrums.

A quick calculation shows it is actually going down by 0.5% for me (albeit I am not on a price cap tariff) based on my duel fuel usage in the North West. This is because the gas unit rate in the North West is reducing from 6.24p to 5.89p per kwh and this based on my usage outweighs the increases to the standing charges for gas and electricity and the increase to the unit rate for electricity 

MattMattMattUK

superkoopauk said:

Well elec only customers are seeing a 4.4% increase probably thanks to all these policy changes

Also standing charges up by approx 1p on each fuel - will annoy the low users

If they did not fix, which a significant proportion of them will have done.

It is probably time to move the policy costs from electricity to gas though.

prowla

So, company sells more product which means the regulator allows them to put the price up.

Exodi

SnowMan said:

MattMattMattUK said:

Basically a rounding error, but will almost certainly induce a huge number of tantrums.

A quick calculation shows it is actually going down by 0.5% for me (albeit I am not on a price cap tariff) based on my duel fuel usage in the North West. This is because the gas unit rate in the North West is reducing from 6.24p to 5.89p per kwh and this based on my usage outweighs the increases to the standing charges for gas and electricity and the increase to the unit rate for electricity 

This has always been the case though.

It depends on mix. This increase on average (DD single rate) is compromised of a 2% increase to standing charge and a 5% increase in unit rate on electricity, and a 3% increase to standing charge but a 5.5% decrease in unit rate on gas.

The impact on a customer will then depend on their consumption and mix.

While Ofgem cites 0.2% as the average increase, obviously a customer who has disproportionally higher gas consumption may actually witness a decrease (like yourself).

The reason @MattMattMattUK says there is likely to be 'a huge number of tantrums' is because users with lower consumption (which could be those striving to be energy efficient or those on the breadline) will feel a bigger impact from increases to the standing charge.

Likewise consumers whose usage mix disproportionally skews higher for electricity will see a significant impact.

The 'winners' are likely to be those with big lofty houses (with mediocre insulation).

molerat

If I were on the cap I would see a fall of £10.59 over a year.  Electric up £43.67, gas down £54.26.

N Scotland cap up 0.13%, my cap costs down 0.48%

chubsta

Wish they had to show a graphic of energy price costs over a 10 year period when they announce rises, would make an interesting comparison…

Scot_39

MattMattMattUK said:

Basically a rounding error, but will almost certainly induce a huge number of tantrums.

Not for electric only. Many of them the real energy poor - suffering yet again under UKs energy policies, just as they did in October.

Scot_39

MattMattMattUK said:

superkoopauk said:

Well elec only customers are seeing a 4.4% increase probably thanks to all these policy changes

Also standing charges up by approx 1p on each fuel - will annoy the low users

If they did not fix, which a significant proportion of them will have done.

It is probably time to move the policy costs from electricity to gas though.

On my legacy - E10 - tariff there are no fixes at my supplier - and no easy routes to other suppliers last time phoned around to check in August after last cap increase of 3% on all electric - none in fact.