Martin Lewis has issued a warning to households over another possible rise in energy bills from January. The MoneySavingExpert founder said the latest figures for wholesale gas prices were “not good news” for households, with current forecasts pointing towards another increase in the energy price cap at the start of next year. Mr Lewis warned that the January price cap is currently on track to be around 10% to 15% higher than the cap coming into force in October.
Posting on X, he said: “This isn’t looking good.” He explained that rising wholesale gas prices were likely to feed through into the energy price cap covering January to March 2027. The warning comes just weeks after Ofgem confirmed another increase in the price cap from October 1.
From October to December, the cap will be set at £1,723 a year for a typical dual-fuel household paying by Direct Debit.
That figure is based on typical use and is not a limit on the total amount a household can be charged. What people actually pay depends on how much gas and electricity they use.
Under the October rates, the average electricity unit rate for Direct Debit customers will be 26.32p per kilowatt hour (kWh), while the average gas unit rate will be 7.97p per kWh.
Electricity standing charges will average 54.83p a day, while gas standing charges will average 29.68p.
Mr Lewis stressed that the January increase is not confirmed, with wholesale prices able to change before Ofgem sets the next cap.
The regulator reviews the energy price cap every three months and is due to announce the rates covering January 1 to March 31, 2027 on November 25.
Households on standard variable or default tariffs are affected by changes to the cap, while those who have chosen a fixed-rate tariff are not directly affected while their fixed deal remains in place.
Ofgem advises customers who are struggling to pay their energy bills to contact their supplier, which is required to offer support.
