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UK energy price cap expected to rise to highest level in three years
Ofgem is expected to lift the cap by about 4% versus the current level, affecting roughly 33 million households on variable tariffs during October through December.
BBC Business reports that energy bills for millions of UK households are expected to rise this winter, with the regulator Ofgem set to announce a higher energy price cap on Wednesday.
The cap is designed to reflect changes in wholesale gas costs and is expected to increase by about 4% compared with the current cap, landing during colder months from October through the end of December for customers on variable tariffs in England, Scotland, and Wales.
According to the report, the average gas price has been 61% higher over the past three months than in late 2025, and the price cap for about 33 million households will be influenced by international wholesale gas price volatility.
The article also says more households have shifted to fixed tariffs, which will delay any increase until at least the end of their term, and it cites Cornwall Insight projections that a typical direct-debit household will pay £1,729 a year from October, up from £1,663 between July and September.
BBC Business adds that Energy UK estimates collective energy debt has risen to £6 billion and could reach about £7 billion by year end, as firms call for more support for customers struggling to pay.