Overview
- Ofgem confirmed the quarterly energy price cap will rise 4% to £1,723 for the period from October 1 to December 31, 2026, which adds about £60 a year for a typical dual‑fuel household.
- Forecaster Cornwall Insight projects the cap could rise again to roughly £1,872 in January 2027 if wholesale prices stay high, a move that would add about £149 and largely undo recent government savings.
- Regulator statements and analysts link the upward pressure on wholesale gas prices to the ongoing conflict in the Middle East and disruption to flows through the Strait of Hormuz, which has tightened global markets.
- The cap limits unit rates and standing charges for default tariffs and covers about 22 million households but does not cap any household’s total bill and about 11 million people on fixed deals are temporarily shielded.
- The government has cut VAT on domestic electricity and introduced earlier bill reductions but think tanks are calling for targeted, means‑tested winter support and consumers are urged to check tariffs, meter readings and contact suppliers if they struggle.