Millions of households across Britain are facing a disheartening start to 2026 as the energy regulator confirms a fresh increase in bills.
What is the new energy price cap?
The latest energy price cap has been set by Ofgem, coming into effect from January 2026. The cap, which is reviewed every three months, will see the typical annual dual-fuel bill rise slightly to £1,758.
This represents an increase of around £3 per year for the average household. While the change is minimal, it means energy charges remain stubbornly high for families already struggling with the cost of living.
Industry and expert reaction
Tim Jarvis, Ofgem's Director General for Markets, acknowledged the ongoing pressure on households. He stated, “While energy prices have fallen in real terms over the past two years, we know people may not be feeling it in their pockets. The price cap helps protect households from overpaying for energy. But it’s only a safety net and there are practical ways that customers can pay less.”
However, criticism has come from industry experts. Scott Byrom, CEO at The Energy Shop, called the 0.2% rise a “further blow to consumers.” He placed blame squarely on the regulator, arguing, “Ofgem is failing consumers by continuing to block competition through its ‘Ban on Acquisition-only Tariffs’ (BATs). Introduced in April 2022, the ban was meant to ensure fairer pricing. Instead, it has delivered higher prices and fewer choices.”
What can households do?
With bills remaining a significant financial burden, money-saving experts are urging consumers to take proactive steps. One key piece of advice is for households to consider fixing their energy bills. This can provide certainty over monthly outgoings and potentially shield them from future price cap increases.
Customers of major suppliers like British Gas, Octopus, Eon, EDF, and OVO are all affected by this change and are encouraged to explore their options to ensure they are on the best possible tariff for their needs.
