Editor’s Note
This article outlines the marginal increase in the energy price cap for the first quarter of 2026, resulting in a slight rise in average annual household bills. It provides specific unit rates and standing charges for electricity and gas during this period.
Energy bills rose marginally in the first quarter of 2026. It means the average household on a default dual-fuel tariff (which covers gas and electricity) will pay £1,758 a year for their energy, around 28p extra per month when compared to the final quarter of 2025.
The January to March 2026 price cap can be found below:
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Energy price cap per unit and standing charge
1 January to 31 March 2026
Electricity
27.69 pence per kWh
54.75 pence daily standing charge
Gas
5.93 pence per kWh
35.09 pence daily standing charge
Source: Ofgem
The small rise came as new charges have started to be included within the cap, pushing up household prices despite the cost of wholesale energy falling. The most significant of these is the new Regulated Asset Base (RAB).
The RAB is designed to raise money to support investment in new nuclear power stations by spreading the costs of construction and operation across consumer bills.
The main nuclear project this is currently funding is the Sizewell C project in Suffolk, which the government has committed £14 billion to. Ministers say, once built, the site will produce enough electricity to power roughly six million homes and protect households from volatility in the wholesale gas market.
While the energy price cap was broadly static between the final quarter of 2025 and the first three months of 2026, a much bigger shake-up is to be expected in April.
In the Autumn Budget, chancellor Rachel Reeves said average household energy bills will be cut by around £150 a year after she announced some green levies will be axed in April 2026.
She also announced the blighted Energy Company Obligation (ECO) scheme, which requires some suppliers to help low-income households increase their energy efficiency by installing energy-saving measures, will not be extended past March 2026.
By removing the green levies, the chancellor expects to shed around £150 from annual household energy bills. Energy consultancy Cornwall Insight estimates savings to be slightly less, at £145.
Before the measures were announced, forecasters were expecting a steep increase in the price cap in April 2026, possibly as much as £57 according to Cornwall Insight, so the £150 drop in bills will come as a positive to households.
