Ofgem have just announced this winter's new price cap for the January to March 2026 energy price cap period.

How much is the energy price cap going up in January?

For an average household paying by Direct Debit, for gas and electricity, the price cap will be rising slightly by 0.2% to £1,758 per year from 1 January 2026. 

What’s changing?

This means if you’re on a Standard Variable tariff or a tariff that tracks the price cap, your energy bill will be slightly increasing from January by around 28p a month.

Breakdown of the average standing charges and unit rates for Direct Debit customers:

Although this rise isn’t as dramatic as we’ve seen in previous years, any increase to our household bills is something we all feel and need to factor into household budgets. Even a small rise, by just a few percent, can make a difference when you’re using more energy over the winter.

• Your monthly bill may go up a little: if you’re on a variable tariff you’ll pay a bit more each month
• Budgeting may become harder: if you’re not on a fixed tariff, your bills can change more often, so it’s good to keep on top of your energy usage and costs
• More changes may come: As the cap’s reviewed every three months, changes could be on the way – keep informed by using our price cap predictions. 

How does the price cap affect me?

This upcoming announcement sets the capped price for variable, default tariffs for the winter months from 1 January to 31 March 2026. This is important as we usually use more energy in January and February keeping warm and lighting our homes, which means our energy bills increase.  View our price cap predictions to get a better idea of how we think energy prices will change over the next year to work out if you want to change your energy tariff to be on a variable or fixed rate energy tariff.

How can I tell if I'm on a standard variable tariff?

The chances are, if you didn't renew your energy tariff when your fixed deal was ending, or you didn't switch provider, or moved into a home and continued on the energy tariff already in place, you're on a Standard Variable or default tariff. To be certain:

• Check your energy bill: This will give you all the information about they type of tariff you're currently using in your home
• Can't find a bill? Get in touch with your energy supplier: They'll let you know what tariff you're on

What is the price cap?

The Ofgem price cap sets a limit on what energy companies can charge per unit of gas and electricity for customers on default tariffs also known as Standard Variable tariffs. The rate price is usually reviewed every three months, which means the price you pay for energy can change, by going up or down, each quarter of the year. 

Do remember, it’s only the unit price that’s affected by Ofgem's price cap – the more energy you use, the more your bill will go up, irrespective of how much the unit rate is capped.

How can I stay updated on changes to the price cap?

It can be tricky keeping on top of the price cap changes. That's why we share our industry experts' price predictions for the coming year. They can help you work out which tariff type is best for your home. See our price cap predictions  

Rich Hughes, Director of Retail at EDF, said: “With today’s announcement on the upcoming price cap, customers might think that sticking with the cap will protect them from rising prices. But, current forecasts suggest prices increase in April - fixing today will lock in these lower prices for the next year. We would urge customers to check the full range of tariffs we offer to see which deal would be best for them. 

What can I do to manage my energy bills as the price cap rises?

The price cap might set your rates, but there’s still plenty you can do to help keep your bills in check:

Check your tariff

After reviewing the price cap changes, see what tariff’s best for your home – compare the price cap prices against our tariffs

Switch to a fixed tariff 

Once you’ve compared prices and considered the new price cap changes, you may think fixing your energy is the best option for the winter months – see if you can save money with an energy quote.

It may be time to switch energy supplier

If you feel you’re paying too much for your energy, and with the new price cap changes coming into force in October, it may be a good time to switch energy supplier. For more help read our guide to switching energy suppliers.

Pay by Direct Debit

It’s usually cheaper to pay for your energy by Direct Debit, rather than by cash, card or cheque – for more handy tips visit our energy tips and advice.

Know your energy spend

Keep an eye on your energy: If you have a smart meter, use it to track how much energy you’re using.

Don’t have a smart meter? 

Make sure to submit regular readings to your energy supplier so you’re only paying for what you use; we can help you get one installed.

Ask for help if you need it

if things get tough, as soon as you can, please get in touch.

Looking ahead

We want energy to work for you – for the long-term. We’re giving away free electricity our customers can use every Sunday with our Sunday Saver challenges, making energy easier to understand, offering energy tariffs that use electricity when its cheapest, installing smart meters so customers can get our cheapest deals and best offers, and using Which? trusted installers for our low-carbon products. And with our ongoing improvements in customer service and commitment to helping build Britain’s zero-carbon future, we’re here to support you—not just today, but for years to come.