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Forecast: UK Energy Price Cap to Fall to £1,733 in January, Then Rise by About £75 in April

Higher network and other non‑wholesale charges are becoming the main driver of bills, with Ofgem set to confirm the January cap on 21 November.

Overview

  • Cornwall Insight’s final forecast, based on data up to 17 November, points to a January 2026 cap of £1,733 for a typical dual‑fuel household, a £22 or 1% drop from £1,755.
  • The consultancy projects the April 2026 cap will be roughly £75 higher than January, reversing the winter dip.
  • Rising costs for electricity transmission and gas distribution are cited as the key pressures, as wholesale energy’s share of bills is expected to fall below 40%.
  • Ofgem is scheduled to publish the official January 2026 price cap on 21 November.
  • Uswitch notes reports of a possible VAT cut are not included in the forecast and says some fixed deals currently undercut the cap, with around 26 offers showing typical savings near £185.