05/10/2026
Some good advice from Martin Lewis in tackling the latest energy price rise news...
*REAP can help you with this :-)
Ofgem's Energy Price Cap rose by 3.6% on October 1st.
The latest forecast predicts a further 21% rise from 1 Jan, the coldest time of the year. If that happens, it'd mean rates over 30% higher than the same period last year - though in practice, heavy gas users would see bigger rises, electricity-only users smaller. The big rise on this Cap is for gas users.
*You DON'T need to let the hikes happen.
Many on standard tariffs can avoid this by switching to the cheapest fixes, where you lock in the rate for a year or two, so it won't rise. Don't just stick with your existing firm though, it may not be the cheapest.
Electricity VAT is being scrapped for six months from too. This applies to the elec unit rates and Standing Charges (not gas). For those on a Price-Capped tariff, the 3.6% Price Cap rise includes the VAT cut - without it, the average rise would've been 6.2%. For those already on fixes or other non-Price Cap tariffs, they should see their electricity bills cut by 4.8%.
*On monthly Direct Debit? It's Meter Reading Week. If you've NOT got working smart meters, submit an up-to-date reading over the next few days to reduce the risk your provider estimates you've used more than you actually have at the new rate.
The January Cap is predicted to rise by a massive 21%. The latest predictions are a tad lower than they were, but still are for a further 21% rise on 1 Jan, and not predicted to drop much in April. The main reason for these big changes is the wholesale rates energy firms pay... and they've been sky-high recently. We're six weeks through the 13-week assessment period, so those highs are now baked in. So while exact predictions change weekly, it's now sadly almost unthinkable it won't rise, and improbable it won't rise substantially. Expect a ballpark of 12% to 30%, depending on world events (barring Govt intervention).
*Check your Direct Debit (DD). If too high, you can challenge unfair DDs. Plus, if you're more than two months in credit right now, consider asking to get excess credit back.
See also
Use Martin Lewis' Cheap Energy Club to compare energy deals. You'll get a unique bespoke prediction of what you'd pay if you stay on the Price Cap and the best deals in market right now.