Energy bills will rise for millions of UK households in January as industry regulator Ofgem announces a rise in gas and electricity costs. The quarterly price cap will increase by 0.2% a year for the average annual dual fuel energy bill. Currently, this figure stands at £1,755, but it will go up to £1,758 for the period covering January to March.

Ofgem explained: "From 1 January to 31 March 2026 there will be a small monthly increase of 28 pence on the price of energy for a typical household who use electricity and gas and pay by Direct Debit." When adjusting for inflation , the cap is actually 2%, or £37 - lower than January to March of this year.

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