European Gas Prices Slide to an 18-Month Low as Weather and Geopolitics Ease Market Pressure
November 25, 2025
Ofgem has confirmed a 0.2% rise in the domestic energy price cap for January–March 2026, taking the typical dual-fuel annual bill to £1,758 — around £3 more than the current quarter.
The increase isn’t being driven by wholesale markets (which have fallen recently), but by growing network and policy costs — including a small additional charge to help fund major infrastructure projects like Sizewell C.
While the uplift is modest — roughly 28p a month for the average household — the wider picture remains challenging. Many families are still coping with bills far above pre-2022 levels, and analysts expect further pressure from “non-energy” costs as Britain upgrades grids and accelerates the transition to a low-carbon system.
Why this matters:
- The cap reflects a shift in what drives bills: not just gas prices, but the cost of modernising the energy system.
- Without policy changes, forecasts point to another rise in April 2026, largely from network and levy increases.
- This makes targeted affordability measures — especially for vulnerable customers — increasingly urgent.