Well, that didn't take fluffing long.
The new UK energy price cap has only just kicked in at £1,723, and we already have a rather unpleasant forecast for January.
Cornwall Insight is forecasting that the typical annualised energy bill could rise to around:
£1,999 ... yep 2 fluffing grand!
from January 2027.
That is roughly £276 more than the current headline figure.
Or about 16% higher.
Before anybody runs off and signs the first fixed tariff they can find, though, there is one VERY important word here ... Forecast.
The January price cap has not been confirmed yet.
So the question isn't just ... "Are bills going up?"
The more useful question is:
Should you fix your energy tariff now — or wait?
£1,723 now... £1,999 in January?
The current Ofgem energy price cap runs from 1 October to 31 December 2026.
For a typical dual-fuel household paying by Direct Debit, the headline figure is ... £1,723 a year
The latest January forecast is approximately ... £1,999
That's quite a jump.
But remember, neither number is a maximum bill.
The price cap controls the rates suppliers can charge customers on standard variable tariffs.
If you use more energy, you pay more ... If you use less, you pay less.
So don't look at £1,999 and assume that is automatically what your household will pay.
Your own gas and electricity usage in kWh matters far more.
What could actually get more expensive?
The current average Direct Debit rates are roughly:
- Electricity: 26.32p per kWh
- Electricity standing charge: 54.83p per day
- Gas: 7.97p per kWh
- Gas standing charge: 29.68p per day
The January forecast suggests something closer to:
- Electricity: 30.28p per kWh
- Gas: 9.76p per kWh
If that happened, the gas unit price would be particularly painful.
And winter is exactly when most gas-heated households use the most energy.
Great timing ... not ....
So should you fix now?
My answer is ....
It is definitely worth checking fixed deals.
That is NOT the same thing as saying everyone should rush to fix today.
A fixed tariff is basically you making a trade with your energy supplier.
You agree your unit rates for a set period.
In return, you get protection if variable prices shoot upwards.
That could look pretty attractive if January really does land close to £1,999.
But there is another side to it.
If and it is a big IF, wholesale prices fall and cheaper tariffs appear later, you could find yourself stuck on a more expensive fix.
Especially if it has hefty exit fees.
So don't just look at the headline annual price.
Three things I'd check before fixing
The big three are:
1. Unit rates
Compare the actual price per kWh for gas and electricity.
2. Standing charges
You pay these every day whether you use much energy or not.
3. Exit fees
If a better deal appears later, how much will it cost you to leave?
A tariff that looks great at first glance can look considerably less lovely once you discover a £150 exit fee attached to it.
How to compare an energy fix properly
This is where your own energy bill becomes useful... Find your annual usage in kWh.
You normally want ... Annual electricity usage ... Annual gas usage ... Current electricity unit rate ... Current gas unit rate ... Electricity standing charge ... Gas standing charge ...
Then compare the fixed tariff using YOUR usage.
Not the mythical "typical household".
If your home uses much more gas than average, a small difference in the gas rate can make a surprisingly large difference over winter ... especially up here in Scotland!
Likewise, if you're a low-energy user, standing charges can make up a much bigger proportion of the bill.
What would £1,999 actually mean?
If we simply compare the two annualised headline numbers:
£1,999 - £1,723 = £276
That's about:
£23 a month
But don't assume your January Direct Debit would simply jump by £23...
Winter energy use is normally far higher than summer use, and suppliers often spread expected annual costs across monthly Direct Debits.
Your actual increase depends on your usage.
Why is the forecast rising?
The main culprit is wholesale gas prices.
Higher gas prices don't only affect people with gas boilers.
Gas-fired power stations also help set electricity prices in Britain.
So expensive gas has an annoying habit of finding its way into both halves of your energy bill.
The January figure could still change before Ofgem confirms the next cap.
That's why I would treat £1,999 as a warning rather than a certainty.
Put 25 November in your diary
Ofgem is expected to confirm the January-March 2027 price cap by 25 November 2026.
That gives us a useful window.
We don't need to panic.
But we also don't need to completely ignore the warning signs until January.
Spend ten minutes checking your bill now...
Then have another look when the official January rates are announced.
MMOnline verdict
For me, the £1,999 forecast is enough to make fixed tariffs worth investigating.
But not enough to make me click "FIX NOW" without comparing the numbers.
Worth checking
✅ Protection from a possible January rise
✅ Easier household budgeting
✅ Potentially good value if you can fix near today's rates
Things to watch
❌ Expensive exit fees
❌ Fixing above current rates
❌ Prices could fall later
❌ Not every household has the same energy usage
So the MMOnline approach is pretty simple:
Compare first. Don't panic.
If the numbers work for your household, a fix could make sense.
If they don't, there is nothing wrong with waiting for more information.
Read the full MMOnline article
I've gone into much more detail on the website, including the current unit rates, the January forecast and a step-by-step checklist for comparing fixed tariffs:
👉 Energy Price Cap January 2027: Bills Could Hit £1,999 — Should You Fix Now?
What about you?
Would a forecast of nearly £2,000 make you fix your energy tariff now, or would you wait until Ofgem confirms the January cap?
Let me know in the comments. 👇
The January 2027 figure discussed above is a forecast, not the confirmed Ofgem price cap. Energy rates vary by region, payment method, meter type and usage. This is general information, not personalised financial advice.
Real tests. Real money. No get-rich-quick nonsense.
