Ofgem announces the January 2027 price cap on 25 November 2026, and it applies from 1 January. Forecasts so far point to a rise of roughly 16% to 29%, which would take a typical household's yearly bill from £1,723 to somewhere between about £2,000 and £2,220.
These are forecasts, not the cap. The forecasts have crept up since October, so treat the higher end as more likely than it looked a few weeks ago. We will update this page with Ofgem's figures on the day they are published.
When is the January 2027 price cap announced?
Ofgem said, when it announced the current cap on 26 August 2026, that the next one (for 1 January to 31 March 2027) would be published on 25 November 2026. The cap changes every three months: on 1 January, 1 April, 1 July and 1 October.
Until 25 November, every figure you see, including on this page, is a forecast.
What is the price cap now?
For 1 October to 31 December 2026, paying by Direct Debit, the cap for a typical home (as of 7 November 2026) is:
| Unit rate | Standing charge | |
|---|---|---|
| Electricity | 26.32p per kWh | 54.83p per day |
| Gas | 7.97p per kWh | 29.68p per day |
Electricity carries no VAT until 31 March 2027 (why); the gas figures include 5% VAT. For a typical household that works out at about £1,723 a year. See the current price cap for the full figures.
What do the forecasts say for January 2027?
| Forecast | Typical yearly bill from 1 January | Change on now | As of |
|---|---|---|---|
| Cornwall Insight | £1,999 | +16% (£276) | 30 Sep 2026, page updated 14 Oct |
| British Gas, EDF and E.ON Next, individually (reported by EnergyPlus) | £2,130 to £2,185 | +24% to +27% | 12 to 15 Oct 2026 |
| Average of British Gas, EDF and E.ON forecasts, reported by Uswitch | about £2,220* | +29% | 4 Nov 2026 |
\*Uswitch reported the 29% average; the pound figure is 29% added to £1,723.
Cornwall Insight's forecast unit rates are 30.28p per kWh for electricity with a 55p daily standing charge, and 9.76p per kWh for gas with a 31p daily standing charge.
The forecasts differ because they were made at different times and with different assumptions about wholesale prices. Neither is a promise. Supplier forecasts have also been revised several times, so look at the date next to each figure.
Why are prices expected to rise?
Mainly wholesale gas. Cornwall Insight points to the conflict in the Middle East disrupting gas supply, and to EU gas storage being at its lowest September level in 15 years.
Ofgem sets the wholesale part of the cap from prices over a fixed window before each cap period. Uswitch says the window for the January cap runs from 19 August to 17 November 2026. Prices in that window feed straight into the January figure, which is why forecasters say a rise is very likely. The forecasts firm up once the window closes on 17 November.
What could a rise mean for your bill?
The cap limits the price you pay per unit and per day. It does not cap your total bill: if you use more, you pay more.
A quick way to see the effect is to add the forecast rise to what you pay now:
| You pay now each month | With a 16% rise | With a 29% rise |
|---|---|---|
| £80 | £93 | £103 |
| £120 | £139 | £155 |
| £160 | £186 | £206 |
This is a rough guide. Your bill depends on how much electricity and gas you use, your region and your payment method. For an estimate based on your own home, use our free estimator.
If your Direct Debit already builds up credit over the summer, your supplier may not need to raise it by the full amount. If you are in debit, expect a review. How to check your Direct Debit.
Should you fix before January?
Only you can weigh that up, and nobody knows the January figure until 25 November. A fixed tariff protects you if the cap rises above your fixed rates. It costs you more if prices fall, and many fixes charge an exit fee if you leave early.
To compare, look at a fix's unit rates and standing charges, not just its yearly estimate, and set them against both today's cap and the forecast rates above. Check the length of the deal and any exit fee. Our guide to fixed or variable tariffs walks through a worked example.
What help is there this winter?
- Warm Home Discount: £150 off your electricity bill if you qualify. Who gets it.
- Winter Fuel Payment: £100 to £300 for people born on or before 27 June 1960 in England, Wales or Northern Ireland (Scotland has its own payment). Who gets it.
- Cold Weather Payment: £25 for each very cold 7-day spell, for some people on benefits. Check your postcode.
- Priority Services Register: free extra support from your supplier and network. Who can join.
- Struggling to pay: your supplier must help. What help you can get.
What to do next
- Note 25 November 2026: Ofgem announces the January cap (we will update this page that day)
- Take meter readings on 31 December or 1 January and send them to your supplier, so December's use is billed at December's prices
- Check your Direct Debit against what you actually use
- If you are thinking about fixing, compare the deal's rates with today's cap and the forecasts, and check the exit fee
- Check whether you qualify for the Warm Home Discount, Winter Fuel Payment or Cold Weather Payment
- Read the key energy deadlines so you know your notice and switching limits
- Estimate your own bill at today's rates
This page is general information, not financial advice. Forecasts can change, and only Ofgem's figures set the cap.
Sources
- Ofgem: Changes to energy price cap between 1 October and 31 December 2026
- Ofgem: Energy price cap explained
- Cornwall Insight: 16% price cap rise forecast in January (30 Sep 2026)
- Cornwall Insight: Predictions and insights into the default tariff cap
- Uswitch: Energy price cap January 2027 latest predictions (updated 4 Nov 2026)
- EnergyPlus: Ofgem price cap January 2027, rise or fall?