The Newshound

Energy bills set to jump 25% by January as only four fixed tariffs still beat the October price cap

From the Newshound archive · first published 21 September 2026.

UK households face a £500 energy bill rise by January, with diesel prices already at their highest since late 2022 as Iran war costs drive up winter energy forecasts.
UK households face a £500 energy bill rise by January, with diesel prices already at their highest since late 2022 as Iran war costs drive up winter energy forecasts.

Households are bracing for a two-stage squeeze on energy costs this winter. The October price cap climbs 4% to £1,723 a year, and Cornwall Insight analysts forecast a further 9% rise in January, fuelled by wholesale gas prices pushed higher by Middle East conflict. EDF Energy says bills will stay elevated well into the 2030s. The gap between the cheapest fixed deals and the cap has narrowed sharply since January, shrinking to just £31.

Eon Next has launched two 24-month fixed tariffs priced below the October cap — currently the lowest-cost two-year offers from any major supplier — though customers face exit fees of £100 per fuel.

MoneySuperMarket's Laura Hinton cautions that top fixed deals may disappear or be repriced with little warning, urging households to lock in a rate before winter arrives.

Households on a standard variable tariff could see bills rise 25% above October's level by January, based on current wholesale price forecasts.

MoreDaily MailShould you fix your energy bill until 2028? Eon Next has cut pricesAOL News UKEnergy bill warning as only four fixed tariffs beat October Ofgem price capFinancial TimesFuel subsidies weigh on public finances as energy crisis deepens
Read today's full feed at The Newshound →