Overview
- The regulator set the January–March cap at £1,758 for a typical dual‑fuel household, an increase of about 28p a month compared with the current quarter.
- The move surprised forecasters after Cornwall Insight had predicted a roughly 1% fall on the back of lower wholesale prices.
- Ofgem said wholesale costs have declined about 4% over three months but remain volatile and still represent the largest share of bills.
- Analysts forecast the April cap will rise by around £75 a year, driven by higher network charges, standing costs and policy levies, with standing charges already edging up in January.
- Charities highlight mounting household energy debt and urge VAT or levy reforms and stronger support in the Budget, while Ofgem advises considering cheaper tariffs or switching to direct debit or prepayment to reduce costs.