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Ofgem Lifts January Energy Price Cap to £1,758 as Some Bills Climb Higher

Experts warn some households face bigger bills due to winter use, payment method differences, policy charges.

Overview

  • From 1 January to 31 March 2026, the cap for a typical dual‑fuel home paying by Direct Debit rises 0.2% from £1,755 to £1,758.
  • MoneySavingExpert puts typical annual costs at £1,758 for Direct Debit, £1,711 for prepayment and about £1,894 for pay‑on‑receipt, which is £136 above the cap.
  • Martin Lewis says electricity‑heavy households on standard tariffs could see rises of roughly 3% to 4% as policy and network charges, not wholesale prices, drive the change.
  • Uswitch cautions that higher winter consumption may push actual bills up by more than the headline increase and says some fixed deals could save around £150 a year.
  • Advice Direct Scotland urges meter readings before New Year’s Eve to avoid estimated bills at the new rates, with Ofgem’s next quarterly update due in February.