Ofgem has confirmed a slight rise in the energy price cap for January to March 2026 with bills nudging up by just 0.2%.

The increase adds around 28 pence a month to the average dual fuel household which keeps the cap broadly flat despite wider market pressures.

The new cap puts a typical Direct Debit household at £1,758 a year.

Ofgem notes this is £37 lower in real terms than the same period last year which underlines the slow easing of prices even if families are not feeling it yet.

Tim Jarvis, Director General for Markets at Ofgem, said: “While energy prices have fallen in real terms over the past two years we know people may not be feeling it in their pockets. The price cap helps protect households from overpaying for energy. But it’s only a safety net and there are practical ways that customers can pay less for their energy.”

He urged households to look at switching tariffs or payment methods. Prepayment is still the cheapest option and Ofgem says those customers are saving around £47 a year.

The regulator also highlights that eight million households still pay by standard credit which is the most expensive route. Switching to Direct Debit could save around £136 with one simple move.

Ofgem says wholesale costs have fallen 4% over the last three months which has helped stabilise the cap. Yet the regulator warns that global volatility still looms which is why it is pushing for more clean domestic power to cut exposure to overseas markets.

Some of the rise is driven by policy costs including support for Sizewell C which adds about £1 a month. A technical revision to typical consumption adds another 75p a month to ensure suppliers can recover fair operating costs.

Standing charges will rise slightly due to Warm Home Discount changes. Ofgem says it is spreading the WHD costs over a longer period to keep bills steadier while extending help to more vulnerable households.