Martin Lewis MSE warns households with electricity and not gas to take action | Personal Finance | Finance
A warning has been issued to anyone who uses electricity instead of gas to heat their home this winter, following a 5% price rise from today, Thursday, January 1. For households struggling with the cost of energy bills, the new year brings an unwelcome price hike. Ofgem has increased its price cap again, for those on a standard variable tariff, by another 0.2% from January 1, 2026, to March 31.
While a 0.2% increase doesn’t seem substantial, this is the average price increase combining both electricity and gas. For households which only have electricity, and not gas, price hikes are actually a much more substantial 5.1% today.
That’s because the price cap has changed prices around, with a 6% drop in gas prices coupled with a 5.1% rise in electricity prices.
It means that for households who only have electricity, which includes many flats and new build homes, as well as homes upgraded to heat pumps and solar panels, the price is actually increasing significantly today.
Martin Lewis’ MSE warned: “Electricity bills go UP an average 5.1% on Thu 1 Jan – here’s what you need to know.
“On Thursday, the new January to March Energy Price Cap kicks in, which dictates the rates that about two-thirds of homes (in England, Scotland & Wales) pay. Overall, it’s an average 0.2% rise when a 6%-ish drop in gas rates is factored in, but if you’re a high elec user, you’ll see bills materially rise.”
The best way to take action is to lock in a fix now, MSE added.
That’s because fixed price tariffs are not affected by the price cap, which only governs the standard variable tariff. As a result, many fixes are significantly cheaper than the price cap, with some a staggering 15% cheaper right now.
MSE added: “This Fuse Energy 1yr fix is the new cheapest fix at an average 14.5% cheaper than the current Price Cap. And as the Cap will rise on 1 Jan, the saving’s even bigger compared to that. Fuse is a new-ish small challenger supplier, but we’ve had strong customer service feedback on it. As always, whether it’s your cheapest depends on where you live and your usage, so the link goes via our full Cheap Energy Club comparison.”
