Households in the UK may face another increase in energy bills beginning in January 2027, according to consumer advocate Martin Lewis. The MoneySavingExpert founder cautioned that current wholesale gas price trends are signaling a potential rise in the energy price cap for the first quarter of next year.
Writing on X, Lewis described the outlook as “not good news,” noting that current forecasts suggest the January price cap could be 10% to 15% higher than the rates scheduled to take effect on October 1, 2026. While the October cap will set the annual limit for a typical dual-fuel household at £1,723, those figures are subject to change based on market conditions.
The energy price cap, regulated by Ofgem, is reviewed every three months. The regulator is scheduled to announce the specific rates for the period of January 1 to March 31, 2027, on November 25. Lewis emphasized that these projections are not yet confirmed, as wholesale market prices remain volatile and could shift before the official announcement.
The cap applies to households on standard variable or default tariffs. Customers on fixed-rate tariffs are generally insulated from these fluctuations for the duration of their contract. Ofgem advises that any households currently struggling to meet their energy obligations should contact their supplier directly, as providers are mandated to offer support and payment assistance plans.