Energy bills to rise by more than expected ahead of winter
Millions of households across England, Scotland, and Wales will see their energy bills rise by 2% in October, after regulator Ofgem confirmed an increase to the energy price cap.
The change means a household with typical energy use will now pay about £1,755 a year — an extra £35 annually. While the rise is smaller than many analysts predicted, campaigners warn it will still leave families facing another winter of relatively high bills.
The cap sets the maximum cost per unit of gas and electricity, not the total bill, which depends on usage. Ofgem adjusts the cap quarterly, mainly based on wholesale energy prices. This latest rise, however, is also linked to higher network costs, such as switching off wind farms when the grid is overloaded and firing up gas plants to meet demand.
Standing Charges Climb
The rise also comes with higher standing charges — the fixed daily fees for staying connected to the network:
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Electricity: up from 29p to 34p per day.
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Gas: up 14%.
Campaigners argue this unfairly penalises low-usage households, including many struggling families.
Support and Debt Concerns
Some relief will come from the Warm Home Discount, worth £150, which will be available to more households this winter as eligibility rules are relaxed. But consumer groups warn the support is limited compared to the scale of the challenge.
Britain’s households are still repaying £4 billion in energy debt built up during previous price spikes. Around 20 million homes pay by direct debit, with another 14 million on standard credit or prepayment meters.
Campaigners like the End Fuel Poverty Alliance warn of “another winter of high prices,” with many families already hundreds of pounds worse off compared to a few years ago.
Calls for Long-Term Fixes
Consumer group Which? said some households may benefit from switching to fixed-rate deals but urged caution about exit fees. Ofgem’s Tim Jarvis called the growing uptake of fixed tariffs a sign of a “healthier market,” but admitted rising prices will still hurt.
The government says it will expand support this winter while also investing in renewable energy to lower prices in the long term. Opposition parties, however, criticised ministers for policy choices that they argue are driving bills up further.
