EDF Energy has forecast an 87% rise in gas prices and a 19.5% increase in electricity costs starting in January, based on its latest Ofgem price cap predictions. The energy firm regularly issues forecasts for the price cap, which is updated every three months.
If realised, these increases would break the UK price record set in 2022-2023 at the start of the Ukraine war, although at that time the government imposed an artificial cap on unit rates.
New unit rates and total bills
The new prices would set electricity at 33.08p per unit, up from 27.69p, and gas at 11.13p per unit, up from 5.93p. In total, EDF predicts the Ofgem price cap could reach £2,192 for average households with typical use, though this is an illustrative figure and actual costs vary with consumption.
That would represent a £469 increase from the current October to January price cap.
Fixed tariff advice
EDF told customers they could save money by switching to a tariff costing less than £2,127 annually. The company stated: "Based on our current predictions, a one-year fixed tariff that costs £2,127 or less annually could save you money, rather than staying on a variable tariff that tracks the cap over the year. This is based on the new consumption levels from July 2026 (2,500 kWh of electricity and 9,500 kWh of gas)."
Money expert Martin Lewis recently told ITV's GMB that the price cap is set to rocket in January. He said: "The January rise. The thing to understand is, the January price cap is based on a 13-week assessment period and the changeable factor is wholesale rates.
"They have been sky high, we are six weeks through the 13 weeks. That sky high wholesale rate, they're baked in, they're locked in. For it not to rise we'd need an enormous, catastrophic plummet in wholesale prices, I mean it would be a good plummet. It would have to be a catastrophic cause.
"It is almost impossible that the January price cap will not be a rise. It is highly improbably it will not be a very substantial rise. I would suggest we should be thinking in the realms of 12 to 30% depending on what happens in the remaining period of seven weeks. If we were to have de-escalation in the Middle East, it will be nearer 10, 12, 15%, if that were to get worse, it could be higher than it is right now."
Asked what people should do to get bills down, Martin added: "Use less. That's not what the government wants me to tell you."
