Ofgem energy price cap: comment

Commenting on news that Ofgem has announced a 4% increase of the energy price cap for the period covering 1 October to 31 December 2026 [1], Jess Ralston, Head of Energy at the Energy and Climate Intelligence Unit (ECIU), said: "Industry experts are clear that gas price increases due to the US-Iran war are driving up bills in October, with wholesale gas prices recently reaching a 3-year high and further bill rises expected in January [2].

"While large UK wind farms drove wholesale electricity prices down by around a third last year [3], by squeezing gas off the grid, investment in more net zero technologies like solar panels and heat pumps will be needed to further reduce exposure to the international gas market.

"With the North Sea running out of gas, irrespective of any new drilling, a slowdown in deploying these technologies, or a return to gas will leave the UK even more dependent on the Strait of Hormuz and the US which under Trump has been a much less reliable trade partner."

ENDS

Notes to editors:

1. Energy price cap will rise by 4% from October 2026 (Ofgem) 

2. Bills to Climb in October, With Worse to Come in January (Cornwall Insight), How will energy prices change? (Money Saving Expert) 

3. Wind farms cut power prices by almost a third in 2025 (ECIU) 

For more information or for interview requests:

George Smeeton, Head of Communications, ECIU, Tel: 020 8156 5305, M: 07894 571 153, email: george.smeeton@eciu.net