Ofgem's price cap will increase by 4 per cent for the period covering 1 October to 31 December 2026.

Ofgem says the increase reflects higher wholesale gas prices as a result of the ongoing conflict in the Middle East, with volatile global gas markets remaining the dominant driver of price changes.

Neil Kenward, Ofgem’s director general for markets, said: “High international gas prices are continuing to drive energy costs in the UK. We welcome the Government’s intervention to remove VAT from electricity bills, without which customers would have faced even higher costs this winter.”

However, the Energy Secretary Miatta Fahnbulleh has accepted that net-zero projects are also partly responsible for pushing up household bills but has defended the green levies saying the Government would not be forgiven if it did not upgrade the energy infrastructure.

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