Energy prices for millions of UK households are set to rise slightly this autumn and winter, as regulator Ofgem prepares to announce its latest price cap.
Analysts had earlier predicted a small fall in energy costs, but the latest estimates suggest a modest 1% annual increase in gas and electricity prices between October and December.
Ofgem’s price cap determines the maximum amount energy suppliers can charge per unit of gas and electricity for approximately 21 million households in England, Scotland, and Wales. The total bill depends on household energy usage.
The new cap will be announced at 07:00 BST and comes into effect at the start of October, lasting three months. Consumers will be able to adjust their budgets accordingly, based on this update.
Experts at energy consultancy Cornwall Insight have predicted that a typical household bill will rise by £17 to £1,737 annually under the new cap. The increase reflects the typical energy usage of an average home.
To calculate individual changes, households can estimate an additional £1 for every £100 spent on energy annually. The price cap is reviewed every three months, primarily reflecting wholesale energy market fluctuations.
This year, however, the slight rise in bills is partly attributed to extra government support measures implemented for the winter season. Households on means-tested benefits will automatically receive the £150 Warm Home Discount.
Previously, some households were ineligible due to property size, but that condition has now been removed. All billpayers contribute to fund this extra support, which supplements the government’s revised winter fuel payments.
Despite these measures, campaigners warn that many households continue to struggle with repayments of accumulated energy debt. Simon Francis, coordinator of the End Fuel Poverty Coalition, said families would still face high bills compared to a few years ago.
“Even with support, the average family is paying hundreds of pounds more than before,” he noted, highlighting the continuing cost-of-living pressures.
For families like Elisha’s, the concern remains real. Enjoying a sunny day at New Brighton with her 11-week-old baby Theo, she said: “At the moment, it’s been ok, but I think the winter might be a different story.”
Consumer group Which? advises households to consider shopping around for fixed-price energy deals but warns about exit fees that could offset any savings. Emily Seymour emphasized that careful comparison is key to reducing costs.
A Department for Energy Security and Net Zero spokeswoman highlighted the government’s long-term strategy to reduce dependence on fossil fuels, describing it as the “clean energy superpower mission.”
She added urgent support measures this winter, including extending the Warm Home Discount to 2.7 million additional households.
Protections also include faster access to automatic compensation when energy suppliers fail to deliver services, aiming to provide some relief to households facing winter energy challenges.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members
