Overview
- For January–March 2026 the cap is set at £1,758, adding about 28p a month for a typical dual‑fuel household on default tariffs covering roughly 26 million accounts.
- Non‑commodity costs drive the change, including a new Sizewell C nuclear levy of about £1 per month and higher operating and network charges.
- Standing charges will rise by around 2% for electricity and 3% for gas, largely to fund the expanded Warm Home Discount that gives eligible households a £150 bill reduction.
- Ofgem says wholesale prices fell about 4% over the past three months but remain volatile, contrary to forecasts that had pointed to a 1% cap decrease.
- Analysts warn the cap could climb in April due to network costs, while advisers note electricity unit rates rise roughly 5% as gas rates fall about 6% and suggest checking for fixed deals around 10% below the cap.