economy
Experts predict Ofgem price cap increase will DOUBLE in January
Experts have predicted that the Ofgem energy price cap could increase by nearly 10% in January, as a major comparison site urged Britons to take action now. The forecast, put out on Wednesday (August 26) by the consultancy Cornwall Insight, came as Ofgem announced a 4% increase for the cap covering October 1 to December 31, 2026.
TL;DR
- Ofgem energy price cap predicted to rise by nearly 10% in January.
- This follows a 4% increase for the cap from October 1 to December 31, 2026.
- The current price cap for a typical household is £1,663.
- The October increase will raise the cap to £1,723 for an average household.
- Cornwall Insight forecasts a further rise to £1,872 in January.
- Rising wholesale energy prices (over 40% of the cap) are a key factor.
- Factors influencing prices include the US-Iran conflict, European heatwaves, Norwegian supply issues, and Asian demand.
- Uswitch.com urges Britons to compare energy deals and consider fixing their rates.
- Sabrina Hoque from Uswitch notes 17 deals are currently undercutting the October price cap.