Overview
- The cap rises 0.2% from today, lifting a typical direct‑debit bill from £1,755 to £1,758, equal to about 28p more per month for an average household.
- Ofgem attributes the increase to policy and operating charges, including the Sizewell C levy adding roughly £1 per month and higher costs linked to the Warm Home Discount.
- The next quarterly review is due in April, when the government says average bills will fall by about £150 after shifting some levies off bills, with Cornwall Insight forecasting a cap near £1,620.
- Ofgem notes the new cap is roughly £37 lower than a year ago in real terms, with recent declines in wholesale prices tempering future costs.
- The update lands during a severe cold snap with UKHSA cold‑health alerts, as Which? advises shopping for fixed deals below the cap and the Warm Home Discount expands to around 2.7 million additional households.