Energy price cap for Great Britain to get surprise increase from January | Energy bills
Energy bills for millions of households in Great Britain will rise from January after the industry regulator announced a surprise rise in gas and electricity costs.
The three-month price cap covering January to March will rise 0.2% to £1,758 for the average annual dual-fuel energy bill this quarter from £1,755, energy regulator Ofgem said on Friday.
Adjusting for inflation, the cap is 2%, or £37, lower than in the same period in 2025, Ofgem said.
The change to the cap, which sets the maximum amount suppliers can charge 29 million household customers for each unit of gas and electricity, means an increase of 28p per month for the average household.
Tim Jarvis, director general of markets at Ofgem, said: “While energy prices have fallen in real terms over the last two years, we know people may not feel this in their pockets.
“The price cap helps prevent households from overpaying for energy. But it’s just a safety net, and there are practical ways for customers to pay less for energy.”
Bills for this winter are expected to remain around 50% higher than before the invasion of Ukraine triggered a crisis-inducing rise in energy market prices.
Official figures show the UK’s energy debt has risen to £4.4bn this year from £2bn three years ago; This figure has continued to rise in recent months despite prices stabilizing above normal levels on the wholesale market.
Figures from Citizens Advice show that around 7 million people, or 10% of all households in Great Britain, live in households that owe money to their suppliers.
The average energy debt for someone seeking support from the charity was around £1,700 at the end of October; This is £700 more than three years ago, according to the charity.
Adam Scorer, chief executive of National Energy Action, said bills “remain incredibly high for millions of people in the UK, just as they have for the last four years”. People are rationing their heating, cutting back on cooking, falling into debt and suffering in cold, damp homes.”
The fuel poverty charity has called on chancellor Rachel Reeves to use the upcoming budget to help tackle “crippling levels of household energy debt” by reducing the cost of some environmental taxes from energy bills and clawing back the costs through general taxation.
Minister for Energy Consumers, Martin McCluskey, said: “We know energy bills are still too high. Through the Government’s clean energy mission, we are taking the long-term steps needed to bring bills down completely.”
