Energy Bills: The Price of Doing Nothing

We hear about energy prices in the news far too often. But what do the headlines actually mean for your household finances?

How will rising energy costs affect homeowners and tenants this winter?

For millions of homeowners and tenants, rising energy bills aren't just another news story. They're another squeeze on budgets that are already stretched, and they arrive just as the heating goes on for winter. With help from Nicola Taylor of Utility Warehouse, we've looked at what has happened to prices this year, what may come next, and what you can do about it.

How much have prices changed in 2026?

Ofgem, the energy regulator, resets the energy price cap every three months. The cap limits what suppliers can charge per unit of gas and electricity, plus the daily standing charge, for anyone on a standard variable tariff. Here is how it has moved in 2026:

*From July, Ofgem lowered its estimate of how much energy a typical home uses, so the headline figures from July onwards aren't directly comparable with earlier ones. On the old basis, the July cap would have been £1,862 and the October cap £1,935.

The percentage changes tell the real story. Taken together, they mean the cap is now roughly 10% higher than it was in January, and these changes compound over time.

Will the VAT cut make a difference?

The Government has removed VAT from household electricity bills from 1 October 2026. That's welcome news, saving the average household around £45 a year, and it applies automatically to fixed tariffs, variable tariffs and prepayment meters alike.

But it helps to put it in perspective:

• It covers electricity only. Gas bills still carry 5% VAT

• It's temporary for now. It runs until 31 March 2027, with any extension to be decided at the Budget.

• It's already in the numbers. Ofgem says the October cap would have been about £45 higher without it, so the 4% rise is what's left after the saving.

How could this affect your household budget?

Imagine you fixed your gas and electricity at £100 a month in January 2026, with the deal due for renewal in January 2027. While you're fixed, you're protected. But what happens when the deal ends?

If prices simply followed the price cap, the same energy would already cost around £110 a month today.

Analysts expect the cap to rise again in January 2027. Cornwall Insight's first forecast is around 9%, while other forecasts suggest 12–14%. On those figures, the same usage could cost roughly £120–£125 a month, or 20–25% more than you're used to paying.

This is an illustration, not a quote. Fixed deals are priced differently from the cap, and your own bill depends on your usage and your supplier. But the message is simple: don't assume your next energy deal will cost the same as your current one.

How can homeowners prepare?

• Check when your fixed rate deal ends. Put the date in your diary and start comparing a few weeks before.

• Think about efficiency. Insulation, draught-proofing and heating controls cut bills now, and energy-efficient homes are increasingly attractive to buyers.

• Know your EPC. Your Energy Performance Certificate shows where improvements could make the biggest difference.

• Check what help is available. Around 6 million households are eligible for the Warm Home Discount this winter, worth £150 off electric bills.

Becoming stale, and it is a genuine risk worth naming.

Renting? Here's where you stand

• Know who pays. Check your tenancy agreement to see whether bills are included in your rent or your responsibility.

• If the bills are in your name, you can usually choose your supplier and tariff. You don't have to stay on whatever deal was in place when you moved in.

• Take meter readings on the day you move in and out, so you only pay for what you use.

• Ask about the EPC. A more efficient home means lower bills, so it's worth factoring in when choosing where to live.

Should landlords be planning ahead?

The Government has confirmed that all privately rented homes in England and Wales must reach EPC C by 1 October 2030 (up from the current minimum of E), with spending capped at £10,000 per property, or less for lower-value homes. Qualifying improvements made since October 2025 count towards the cap.

Planning upgrades early spreads the cost, keeps your property appealing to tenants facing higher bills, and avoids a rush as the deadline approaches. If you let with bills included, rising prices also come straight off your margin, so it's worth reviewing those arrangements too.

Talk to an expert

Nicola Taylor of Utility Warehouse can help you review your household bills and bring them together in one place. Through Utility Warehouse, she can offer:

Energy

Broadband

Mobile

Home building and contents insurance

Home emergency and boiler cover

Car insurance (available from the end of November)

Everything comes on one monthly bill, which saves time and makes budgeting simpler. Customers can also earn £50 for every referral and get discounts when they shop with a wide range of retailers.

To find out more, get in touch with Nicola:

Website: www.itsup2you.co.uk

Call or WhatsApp: 07940 853 890

Email: nicola@itsup2you.co.uk

And if you're a landlord thinking about energy efficiency upgrades, or a tenant or buyer wondering what a property's EPC means for running costs, the team at Roberts & Co is always happy to talk it through.

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Sources: price cap figures from Ofgem announcements for January, April, July and October 2026; VAT changes from GOV.UK; January 2027 forecasts from Cornwall Insight and industry analysts; EPC requirements from the Government's Warm Homes Plan (January 2026). Forecasts may change, and this article is general information rather than financial advice.