Expert reacts to the latest energy price cap rise

Ofgem has today (21 November) announced an increase to the energy price cap, with the average annual cost of energy for a typical household rising just £3 to £1,758.* This is a 0.2% increase from the previous cap, which sat at £1,755. The new price cap will come into force on 1st January 2026. 

Gareth Kloet, expert at Go.Compare Energy, commented on the news: 

“We typically see the energy price cap rise in the winter months, so it won’t be a shock to consumers that a price rise has been announced this morning. But as we head into the colder and darker months of winter, and Brits turn to put their heating on, energy usage increases, so this will bring some worry to billpayers.

“While wholesale prices of gas and electricity are currently stable, the standing charge for electricity has risen by 2% while for gas it's up 3%, which Ofgem says will equate to around 2p a day. A standing charge is the fixed daily cost you pay no matter how much energy you use, to cover the cost of keeping your home connected to the energy network.

Gareth continued, “With a slight increase in the price cap, now is also a good time to start thinking about the energy deal you’re on - if you’re currently on a flexible tariff, now is the time to look to save yourself some money by switching to a fixed deal. Opting for a fixed-rate energy deal means the price you pay per unit for your gas and electricity is fixed for a set amount of time.

“Not every deal will work out cheaper for everyone, so it’s important to think about your own energy use. If you’re already in a fixed-rate deal, consider whether you’ll need to pay any exit fees to move contracts. Once you’ve got all this information, using a price comparison website is a great way to help you weigh up the choices, as it provides you with a straightforward way to compare what’s available to you in the market.

“As the new price cap comes into effect on January 1st, it’s also important to take a meter reading as close to 31st December 2025 as possible. This will help you ensure you are being charged the right amount of energy at the right rate.

“It’s also worth being aware that if you are struggling to make payments or are worried about your energy bills, you should talk to your energy provider - they have a duty to help customers and can discuss a payment plan with you,” Gareth added.

To learn more about the energy price cap, visit: https://www.gocompare.com/gas-and-electricity/guide/energy-price-cap/