As the UK braces for another winter of cold weather warnings, the Ofgem price cap for January to March 2026 has been announced.
Average energy bills will come in at £1,758. This is £3 higher than current levels, with bills remaining over £700 above 2020 levels and £190 higher than at the General Election in July 2024.
Meanwhile the energy industry has posted more than £40bn in UK profits in the last two years. With the Budget days away, the Government faces a defining choice.
A spokesperson for the End Fuel Poverty Coalition, commented:
“Energy bills remain stubbornly high as households face a fifth winter of the energy costs crisis. Today’s announcement sees standing charges rise yet again, highlighting the structural challenges in how energy is paid for.
“The addition of a new levy on bills which pays for nuclear power stations is unwelcome and could have been delayed until closer to when these plants actually start to generate electricity.
“Today’s Ofgem announcement keeps the average energy bill at almost £700 above the levels of winter 2020/21 and £190 more than at the 2024 General Election.
“Despite many people living in cold damp homes, the energy industry has posted more than £125 billion in profits in the UK alone in recent years.
“Yet some business lobbyists have called for the Chancellor to end the Windfall Tax. Instead, next week’s Budget is a chance for the Government to finally get serious about ending fuel poverty.
“We need long-term investment in energy efficiency, not short-term thinking. We need action to bring down electricity prices, not excuses. And we need a fair tax regime that puts people before profiteers.
“If the Government truly wants to cut bills and protect the public, it must fully fund the Warm Homes Plan, continue to improve our energy security, introduce a fair social tariff, and reform our broken energy pricing system.”