Energy Prices to Increase Under New Ofgem Price Cap

Ofgem’s new energy price cap will significantly raise household energy bills this autumn, affecting 28 million homes in England, Wales, and Scotland. The typical annual bill is expected to increase by one hundred fifty pounds to one thousand seven hundred fourteen pounds. Additional financial support has been reduced, with many households bracing for a challenging winter.

Billpayers are expected to face a sharp rise in household energy prices after Ofgem announces its new price cap.

The energy regulator will confirm the cap on default tariffs for the three months starting October at 07:00 BST.

A likely rise of about 9%, or one hundred fifty pounds, will affect the annual bill of a typical household.

The change impacts 28 million homes across England, Wales, and Scotland.

Energy prices, which fell earlier this year, are now moving back towards last autumn's levels.

Consultancy Cornwall Insight predicts a typical household will pay one thousand seven hundred fourteen pounds annually from October, up from the current one thousand five hundred sixty-eight pounds.

Despite being lower than peak prices, energy costs remain elevated compared to pre-pandemic levels, with financial support from the government being reduced.

Citizens Advice anticipates many households will struggle this winter, particularly those already in debt.

Ofgem may revise the standing charges, which vary by region.

Additionally, around eight hundred eighty thousand pensioner households eligible for pension credit do not claim it.

Pension credit can provide substantial financial support, including eligibility for winter fuel payments.

Information on eligibility and how to claim is available through the government's resources and phone line.