Households Urged to Act as Electricity Prices Surge by 5.1%

Households relying solely on electricity for heating face a significant increase in their energy bills, with prices rising by an average of 5.1% effective from January 1, 2026. This price hike follows a recent decision by Ofgem to adjust its price cap for standard variable tariffs, which has seen a slight overall increase of 0.2%. The adjustments to the price cap come as a stark reminder of the challenges many households face amid rising energy costs.

The changes will affect approximately two-thirds of homes across England, Scotland, and Wales, with households that exclusively use electricity experiencing the most considerable financial impact. While the price cap has led to a 6% decrease in gas prices, the corresponding rise in electricity costs means those without gas heating will feel the pinch more acutely.

Martin Lewis and MSE Highlight Urgent Action

Consumer champion Martin Lewis and his organization, MSE, have issued a warning to households affected by these price changes. Lewis stated, “Electricity bills go UP an average 5.1% on Thu 1 Jan – here’s what you need to know.” He emphasized that the new energy price cap, effective from January 1 to March 31, is particularly relevant for high electricity users, who will see their bills rise significantly.

MSE has recommended that customers take proactive measures to mitigate the financial impact. One of the most effective strategies is to switch to fixed-rate tariffs, which are not subject to the fluctuations of the price cap. Currently, many fixed-rate options are available at prices that are substantially lower than the new cap, with some offerings up to 15% cheaper.

Exploring Cheaper Alternatives

Among the options highlighted by MSE is the Fuse Energy one-year fixed tariff, which is reported to be an average of 14.5% cheaper than the current price cap. Although Fuse Energy is a relatively new player in the market, customer feedback indicates a strong level of service. MSE advises consumers to assess their individual energy usage and regional pricing when considering their options, noting that the best choice can vary based on location.

As electricity prices rise, the importance of informed decision-making becomes crucial for households. MSE suggests that consumers utilize their Cheap Energy Club comparison tool to identify the most cost-effective solutions tailored to their circumstances. With the energy landscape shifting, now is the time for households to act and secure the best possible rates before the price cap adjustments take full effect.