Ofgem has this morning confirmed the Energy Price Cap for Q1 2026. From January 1st, the average household dual-fuel bill will sit at £1,758 per year.
The Details This represents a very slight increase of just £3 per year (0.2%) compared to the current October cap of £1,755. While analysts had hoped for a tiny decrease, rising “network costs” (the cost of maintaining the pipes and wires) and green levies have pushed the final figure up slightly.
What does this mean for you?
- Electricity: The unit rate will average around 27.69p per kWh.
- Gas: The unit rate will average around 5.93p per kWh.
- Standing Charges: These remain stubbornly high at roughly 54p per day for electricity and 35p per day for gas.
Action Plan Since the price is essentially staying flat, there is no urgent need to switch tariffs unless you find a fixed deal that significantly undercuts this cap. Your focus should be on efficiency. Every unit of heat you keep inside your home is money saved. If you haven’t yet checked your eligibility for insulation grants, do it now. A well-insulated loft can save you considerably more than switching suppliers usually does.
