Business
Household energy bills rise as temperatures plummet
Many households’ energy bills will rise from today, just as a swathe of cold health alerts have been issued for large areas of the UK.
The 0.2% increase to Ofgem’s energy price cap will equate to a rise of about 28p a month for the average household in England, Wales and Scotland remaining on a standard variable tariff.
This amounts to an average overall bill of £1,758 a year, up from the current £1,755.
However experts at Cornwall Insight have forecast energy bills to fall by £138, or 8%, to £1,620 a year when the cap is next updated in April thanks to Government measures announced in the recent budget.
Chancellor Rachel Reeves said £150 would be cut from the average household bill from April by scrapping the Energy Company Obligation (Eco) scheme introduced by the Tories in government.
Wholesale energy prices have also dropped in recent weeks, which is set to keep a lid on price hikes from April, Cornwall Insight said.
Regulator Ofgem said Thursday’s increase to the cap, which was announced in November, was being driven by the funding of nuclear power projects and discounts to some households’ winter bills.
This included funding the Government’s Sizewell C nuclear power plant in Suffolk – with an average of £1 added to each household’s energy bills per month for the duration of the £38 billion construction.
An increase to standing charges – the amount consumers pay per day to have energy supplied to their homes – was also largely due to costs linked to the Government’s Warm Home Discount scheme.
Around 2.7 million more low-income households, including 900,000 families with children, are eligible for the £150 discount this winter.
However, the regulator said the new price cap was £37 lower than a year ago when adjusted for inflation.
Ofgem’s price cap sets a maximum rate per unit and standing charge that customers can be billed when they are not on a fixed tariff.
It does not limit total bills because households still pay for the amount of energy they consume.
The price cap increase comes just as a yellow warning for snow and ice has been issued for parts of Scotland north of the central belt from 6am on New Year’s Day until midnight on January 2.
Meanwhile, amber cold health alerts have been issued for the North East and North West of England, which are due to remain in place until noon on January 5, with temperatures expected to fall to 3-5C.
Yellow cold health alerts have been issued by the UK Health Security Agency (UKHSA) for London and the East, South East and South West of England, as well as the East and West Midlands and Yorkshire and the Humber.
Ned Hammond, the deputy director of Energy UK, which represents suppliers, said: “While the new price cap coming into force only includes a small rise, it still means energy bills are too high for too many households. Gas prices may have declined in recent months but remain higher than previous years, while increasing policy costs are also adding to bills.
“The Chancellor’s intervention in the Budget to move a significant amount of policy costs into taxation was welcome and will provide much needed relief for households across the country when this comes into effect in April.
“However, even with this intervention, energy bills are expected to remain well above pre-energy crisis levels. With over six million households in fuel poverty and domestic energy debt reaching record highs of around £5.5 billion, a comprehensive plan is needed to further bring down bills and truly address these challenges.”
Simon Francis, co-ordinator of the End Fuel Poverty Coalition, said: “It really is a case of every little doesn’t help as households spend a fifth winter in the energy bills crisis. Tiny movements in the price cap still hit hard for families choosing between heating and eating.
“People continue to live in cold, damp homes, where the risks go beyond discomfort and into real danger, including exposure to carbon monoxide. Younger adults, private renters and households with children are among those most at risk as people cut back on heating, delay repairs and try to block draughts just to stay warm.
“Meanwhile, the wider energy industry has made more than £125 billion in UK profits since 2020, including firms operating in a dying North Sea. This isn’t a crisis of scarcity, it’s a crisis of priorities. Ministers must move beyond short-term price cap tweaks and get serious about ending fuel poverty by investing in energy efficiency, reforming energy pricing, introducing a fair social tariff and fully funding the Warm Homes Plan.”
Which? energy editor Emily Seymour said: “As we head into the coldest months of the year, many households will be concerned that the energy price cap will increase slightly in the new year.
“There are several deals on the market for lower than the price cap so now is a good time to shop around if you’re looking to fix. As a rule of thumb, we’d recommend looking for deals cheaper than the current price cap, not longer than 12 months and without significant exit fees.
“If you’re on a variable tariff, make sure to submit a meter reading to ensure you pay the cheaper rates for any energy used before the new price cap takes effect.”
Dr Craig Lowrey, principal consultant at Cornwall Insight, said: “Households will welcome a cut in April, bringing the cap to its lowest level since 2024. That’s a step towards the Government’s £300 reduction target by 2030 and will ease some pressure on both families and policymakers.
“But we need to be clear – costs aren’t vanishing, they’re shifting. Moving the Renewables Obligation from bills to taxation may feel like a win, but ultimately, it’s still going to be paid by the public.
“Crucially, as we move forward, vulnerable households must be protected. Cutting bills today is welcome, but without targeted support and a clear plan for fairer funding, the benefits of net zero could bypass those who need them most.”
Business
Netflix grants Warner Bros. Discovery 7-day waiver to reopen deal talks with Paramount Skydance
Warner Bros. Discovery on Tuesday said it will reopen deal talks with Paramount Skydance under a seven-day waiver from Netflix to explore “deficiencies” in Paramount’s offer to buy the entirety of WBD.
The legacy media company has a pending transaction with Netflix for its streaming and studio businesses. Paramount launched a hostile tender offer straight to WBD shareholders at $30 per share after losing out to Netflix in a bidding war.
“Netflix has provided WBD a limited waiver under the terms of WBD’s merger agreement with Netflix, permitting WBD to engage in discussions with Paramount Skydance (“PSKY”) (NASDAQ: PSKY) for a seven-day period ending on February 23, 2026 to seek clarity for WBD stockholders and provide PSKY the ability to make its best and final offer,” Warner Bros. Discovery said in a release.
“During this period, WBD will engage with PSKY to discuss the deficiencies that remain unresolved and clarify certain terms of PSKY’s proposed merger agreement,” it said.
Paramount leadership has repeatedly said its $30 per share, all-cash offer is not its “best and final.” Last week the company sweetened its offer with additional “enhancements,” but stopped short of raising the per-share value.
Warner Bros. Discovery said Tuesday that a senior Paramount representative informed a WBD board member that it would pay $31 per share if deal talks were to reopen.
Tune in at 4:30pm ET as Netflix co-CEO Ted Sarandos joins CNBC TV. Watch in real time on CNBC+ or the CNBC Pro stream.
After the limited waiver period, Netflix will retain its matching rights provided by the merger agreement, WBD said.
“Throughout the entire process, our sole focus has been on maximizing value and certainty for WBD shareholders,” said WBD CEO David Zaslav in a statement. “Every step of the way, we have provided PSKY with clear direction on the deficiencies in their offers and opportunities to address them. We are engaging with PSKY now to determine whether they can deliver an actionable, binding proposal that provides superior value and certainty for WBD shareholders through their best and final offer.”
WBD also on Tuesday announced a special meeting of shareholders will be held on March 20 and said its board continues to unanimously recommend the Netflix deal over Paramount’s offer.
Netflix said in a statement the shareholder meeting date marked an “important milestone for our transaction with WBD.”
“While we are confident that our transaction provides superior value and certainty, we recognize the ongoing distraction for WBD stockholders and the broader entertainment industry caused by PSKY’s antics,” Netflix said. “Accordingly, we granted WBD a narrow seven-day waiver of certain obligations under our merger agreement to allow them to engage with PSKY to fully and finally resolve this matter.”
Shares of Warner Bros. Discovery were up about 3.5% Tuesday. Shares of Paramount were up about 6%.
Raising regulatory concerns
Either proposed purchase of Warner Bros. Discovery assets comes with regulatory questions.
Media industry insiders and lawmakers have questioned whether Netflix’s proposed deal would win approval as it would bring together two of the top streaming services and could result in higher prices for consumers.
Netflix leadership has repeatedly said the company believes it would win regulatory approval for the deal because it would preserve jobs in a challenged media landscape rife with layoffs.
Paramount has sounded the alarm to WBD shareholders, however, and argues its offer is not only better but would more easily garner government support.
On the flipside, Paramount’s offer has raised questions of foreign funding and antitrust considerations in bringing together two large portfolios of pay TV channels and two major film studios.
Paramount’s deal is financed in part by sovereign wealth funds of Saudi Arabia; Abu Dhabi, United Arab Emirates; and Qatar. Paramount has said those entities have agreed to forgo any governance rights.
In its statement on Tuesday, Netflix called out the foreign funding, which it said it expects to come under scrutiny from international regulators, including the Committee on Foreign Investment in the United States (CFIUS). Netflix said it also expects European authorities “to scrutinize the Middle Eastern investors in PSKY’s consortium and to be skeptical of claims that they are purely passive investors.”
Given Europe’s track record of antitrust enforcement, it’s possible regulatory battles for either deal would be won or lost in that market. Of course, the question still looms of how President Donald Trump will view either transaction. Trump recently said he hadn’t been involved in the process so far and didn’t plan to be, though he has reportedly met with executives from each camp.
Netflix’s statement on Tuesday “unsurprisingly points to a number of arguments Netflix believes it has in its favor,” according to an analyst note from Raymond James on Tuesday, “including better prospects for approval, a clearer national security picture, and financial security.”
Stock prices in London have closed mostly higher, as investors shored up bets on the Bank of England cutting interest rates in March after unemployment increased, while the pound fell.
The FTSE 100 index closed up 82.48 points, 0.8%, at 10,556.17, a new record high. The FTSE 250 ended up 180.35 points, 0.8%, at 23,555.82, and the AIM all-share closed down 4.73 points, 0.6%, at 806.61.
In European equities on Tuesday, the CAC 40 in Paris closed 0.5% higher, while the DAX 40 in Frankfurt ended up 0.8%.
The pound was lower at 1.3531 US dollars on Tuesday afternoon from 1.3629 dollars at the equities close on Monday. The euro stood lower at 1.1830 dollars from 1.1854. Against the yen, the dollar was trading higher at 153.61 yen compared to 153.44.
The unemployment rate came in at 5.2% for the three months ended December, up from 5.1% in the three months ended November. The data was above the FXStreet-cited consensus, which had pencilled in another 5.1% reading.
The ONS estimated that the number of payrolled employees in the UK fell by 121,000, or 0.4%, in the year to December 2025, and decreased by 6,000 on-month.
Pantheon Macroeconomics analyst Rob Wood said: “The rise in unemployment in December and drop in whole-economy average weekly earnings growth will grab the attention, and suggest sharply fading inflation pressures.
“Combined with payrolls still falling slightly the (Monetary Policy Committee) doves have enough to cut rates in March rather than waiting until April, so markets would be right to ramp up the probability of a March cut.”
Deutsche Bank analyst Sanjay Raja said the data “won’t do much to assuage fears that the jobs market remains weak”.
“How high will the jobless rate go? Today’s data suggests there may be a little more room to go before we hit the cyclical peak in the unemployment rate.
“The single month jobless rate already sits at 5.4%. HMRC data suggests more redundancies are ahead. And almost every single survey points to limited hiring plans.
“This will put continued upward pressure on the jobless rate. Put simply, the jobs market remains stuck.”
In response to renewed interest rate cut hopes, Barratt Redrow was up 3.1%. Other property stocks also performed well, with real estate investor Land Securities up 2.4% and fellow housebuilder Persimmon 1.1% higher.
Stocks in New York were mixed, after being closed on Monday for a long weekend. The Dow Jones Industrial Average was marginally higher, the S&P 500 index down 0.1%, and the Nasdaq Composite 0.2% lower.
The yield on the US 10-year Treasury was unchanged from Friday at 4.05%. The yield on the US 30-year Treasury slimmed to 4.68% from 4.70%.
In London, Antofagasta fell 5.7% as it posted revenue and operating profit below analyst expectations.
The London-based miner operating in Chile said pre-tax profit climbed 53% to 3.16 billion US dollars (£2.3 billion) in 2025 from 2.07 billion dollars (£1.51 billion) in 2024.
Revenue increased 30% to 8.62 billion dollars (£6.31 billion) from 6.61 billion dollars (£4.84 billion), albeit a notch below Peel Hunt expectations of 8.68 billion (£6.36 billion). Earnings before interest, tax, depreciation and amortisation grew 52% to a “record” 5.20 billion dollars (£3.81 billion) from 3.43 billion dollars (£2.51 billion).
Operating profit from subsidiaries and share of total results from associates and joint ventures climbed 64% to 3.43 billion dollars (£2.51 billion) in 2025 from 2.08 billion dollars (£1.5 billion) in 2024. It was slightly below market consensus according to Peel Hunt of 3.45 billion dollars (£2.52 billion).
Antofagasta recommended a final dividend of 48 US cents per share for 2025, more than doubled from 23.5 cents a year ago. This brings the total payout for 2025 to 64.6 cents, more than doubled from 31.4 cents.
Peers Endeavour Mining, Anglo American and Fresnillo were also down 4.2%, 2.4% and 2.1% respectively.
On the FTSE 250 index, Raspberry Pi led the way as its shares jumped 36%.
Bloomberg News reported that the gains were driven by a social media post which said AI agents such as OpenClaw could drive demand for the firm’s single-board computers. The post on X attracted 200,000 views.
A spokesperson for Raspberry Pi told Bloomberg that “there’s nothing from the company side beyond what’s already in the public domain”.
SSP Group shares were up 6.6% after UBS raised its rating on the stock to “buy”.
Applied Nutrition was 6.2% higher as it raised its revenue forecast for its current financial year above market expectations, citing a strong first-half performance.
The Merseyside-based wellness brand now sees revenue for the financial year ending July 31 of around GBP140 million, above market consensus of £133.5 million. Revenue will be up 31% from £107.1 million in financial 2025, when it was in turn up 24% from £86.2 million in financial 2024.
The positive results are thanks to the company’s “channel diversification across UK high street health retailers, grocers and discounters” alongside “accelerated demand for a number of…product launches” in the first half of financial 2026, it said.
Among smaller caps, boohoo Group shares fell 6.7% as it confirmed it is preparing to raise £35 million in fresh equity and is in talks with its lenders to create additional liquidity.
The online fast fashion retailer that trades as Debenhams said the equity will be used to pay down its debt and provides the increased financial flexibility to purse its turnaround plan.
It is speaking to its lending syndicate about improved covenant amendments due to its expected reduced leverage.
Boohoo said chief executive Dan Finley and directors Mahmud Kamani and Iain McDonald all will participate in the equity raise at 20 pence per share. Total support for the equity raise from directors and institutional shareholders is in excess of £24 million, boohoo said.
Brent oil was lower at 67.17 dollars a barrel on Tuesday afternoon from 68.42 dollars late on Monday. Gold was down at 4,882.00 dollars an ounce from 4,985.30 dollars.
The biggest risers on the FTSE 100 were Coca-Cola Europacific Partners, up 260.00p at 7,690.00p, Barratt Redrow, up 11.70p at 385.60p, Airtel Africa, up 10.40p at 346.60p, Pearson, up 25.80p at 929.80p and Compass Group, up 58.00p at 2,111.00p.
The biggest fallers on the FTSE 100 were Endeavour Mining, down 176.00p at 4,510.00p, Antofagasta, down 129.00p at 3,617.00p, Weir Group, down 80.00p at 3,430.00p, Anglo American, down 79.00p at 3,499.00p, and Fresnillo, down 80.00p at 3,734.00p.
On Wednesday’s economic calendar, the UK will see CPI and PPI data at 7am GMT, with French CPI later and US building permits and industrial production data to follow in the afternoon.
Wednesday’s corporate calendar has full year results from defence contractor BAE Systems and miner Glencore, among others.
Contributed by Alliance News
Last Updated:
NPS lets Indians aged 18-70 invest in bonds, government securities, or equity, with active or auto asset allocation and pension benefits at age 60.
Choosing between control and convenience: NPS Active vs Auto Choice during market volatility.
The National Pension Scheme (NPS) is a government-backed retirement scheme, allowing salaried professionals to save for after-job life.
NPS provides people with the option of investing in corporate bonds, government securities or equity. If you are an Indian citizen between the age of 18 to 70 years, you can invest in NPS. Under this scheme, you can contribute regularly during your working age. After this, at the age of 60, you can withdraw a part of the accumulated money and can get regular pension income from the remaining amount.
NPS gives two options to the subscriber to invest in the scheme, auto and active. An auto choice is an option in which the subscribers give the fund manager the freedom to invest their money wherever they want, whereas, in active choice, the subscriber tells assets his money is to be invested.
What is an active choice in NPS?
This option is available to NPS members who want to select their own asset blend. Subscribers can select the ratio in which their money will be spread across different asset classes under this choice. In other words, you have a say in the assets you own. Even within this option, there are restrictions because a maximum of 75% can be allocated to stocks. This maximum was increased a few years ago from 50%.
What is an auto choice in NPS?
There are three funds in NPS for auto allocation (NPS auto choice option). There is a Default Moderate Life Cycle Fund. In this, the maximum equity investment can be up to 50 per cent. The second is the Conservative Life Cycle Fund, which allows only up to 25% investment in equities. The third is the Aggressive Life Cycle Fund in which you can invest up to 75% in equity.
If you want to choose the active choice, consider three things before doing so. First, are they able to do the right capital allocation by valuing different asset classes? Secondly, if the subscriber has investments elsewhere and NPS is only a part of his overall portfolio, can they go for active choice? Thirdly, if there is a need to change the NPS portfolio in future, you will do so. If you consider yourself true on these three conditions, then you should choose the active choice option to invest in NPS.
Which Is Better Choice?
At a time of market volatility, when performance has remained muted for the past six months to a year, there are concerns about overexposure to equities among a section of subscribers.
“In volatile phases, this design (auto option) can be a big advantage. There is no temptation to time the market. There is no last-minute panic exit. The portfolio quietly adjusts on its own,” Ajay Kumar Yadav, CFP CM, Group CEO& CIO , Wise FinServ added.
On the other hand, Active Choice offers greater flexibility. Yadav explained that it allows investors to decide how much to allocate to equity, corporate bonds, and government securities within prescribed limits. According to him, this option suits investors who understand markets and are comfortable managing asset allocation decisions.
“For example, when interest rates soften, increasing exposure to government securities may enhance returns. After sharp equity corrections, staying invested or even raising equity allocation can strengthen long-term compounding,” he said.
Shantanu Awasthi, Co-founder and CEO of Mavenark Wealth, said Auto Choice operates within a predefined asset allocation structure managed under a single AMC framework. “Auto Choice confines investors to a predefined asset allocation structure managed within a single AMC,” he said, adding that the model offers simplicity and built-in discipline but limits flexibility.
According to Awasthi, Auto is essentially a structured, convenience-led approach where investors outsource both asset allocation and fund selection. While this reduces decision fatigue, it restricts customization and tactical shifts during changing market cycles.
CA Niresh Maheshwari, Director at Wealth Wisdom India Pvt. Ltd., said the bigger risk during volatility lies in investor reaction rather than price swings. “When markets turn volatile, the real risk isn’t the fluctuation, it’s how investors react to it,” he said.
Maheshwari explained that Active Choice may suit investors who understand asset allocation and are comfortable maintaining higher equity exposure, even as they age. “Active Choice are suitable to those who understand markets and asset allocation, want higher equity exposure even as they age, and are comfortable monitoring their portfolio,” he said. However, he warned that discipline is critical — “Without it, flexibility becomes overreaction.”
For investors who prefer a hands-off approach, Maheshwari said Auto Choice may offer more comfort. “Auto Choice works for those who prefer a set-and-forget approach and don’t want to manage risk themselves,” he said. The life-cycle model automatically reduces equity exposure with age, limiting the need for tactical decisions during market swings.
“For long-term retirement investing, behaviour and consistency matter far more than trying to time the market,” Maheshwari added.
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