January 2026 Energy Price Cap

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Ofgem has announced a 0.2% increase in the energy price cap for the period of 1st January 2026 to 31st March 2026. This means the typical annual household bill will be around £1,758 a year, a rise of £3 from the October-December figure of £1,755 a year.  Compared to the same period in 2025, energy prices will £20 more expensive per year.

While the price is announced to rise by only 0.2% the reality is slightly different. Electricity costs are increasing by around 5.1% while gas costs are falling, so depending on how you use energy you may be impacted differently.

The energy price cap is represented as an annual bill based upon 2700kWh of electricity and 11500kWh of gas usage per year. Most households are unlikely to be on a typical usage and the actual cost will vary depending on your consumption. Many households in Scotland are likely to have higher typical usage than the UK average due to our colder climate.

The price cap is actually a cap on the tariff suppliers can charge you. This is the unit rate, the cost per kWh of energy you use and a daily standing charge.

 

Tariff Table

From 1st October the average tariff in the UK will be:

Please note that costs can vary by region and may vary slightly from what is represented below

 

Information is extracted from the Ofgem website here.

Direct Debit

Electricity

27.18p per kWh unit rate & 57.62p per day standing charge

Gas

5.89p per kWh unit rate & 35.30p per day standing charge

 

Prepayment Meter

Electricity

26.35p per kWh unit rate & 57.62p per day standing charge

Gas

5.65p per kWh unit rate & 35.30p per day standing charge

 

Standard Credit

Electricity

28.69p per kWh unit rate & 65.62p per day standing charge

Gas

6.20p per kWh unit rate & 42.91p per day standing charge

 

Comparison to previous price caps

Compared to the same period last year, prices are around 1% more expensive.

Even though prices remain consistently higher than they were before the energy crisis, Government support schemes such as the Energy Bill Support Scheme and Cost of Living Payments have not been reinstated. The cost of living is still increasing as other household expenses continue to rise.

Households may be eligible for the Warm Home Discount which some suppliers are still taking applications for.

 

Should I Switch?

Some fixed price deals may be cheaper than the July energy price cap. We’d currently recommend checking out the Money Saving Expert guide which lists the pro’s and con’s of all currently available tariffs that are worth considering. As tariffs may only be available for a short space of time it’s worth checking this guide to see if there’s a deal that’s right for you.

 

Get Advice

Are you worried about energy prices or debt? Our energy advisors can provide free and impartial advice to anyone in Fife. Get in touch to arrange a home visit or telephone advice appointment to see what you can do to save energy at home.

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