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UK energy price cap rises 4% from October for millions of households
Ofgem said the cap will equal about £1,723 a year for a typical household, up from £1,663 in the July to September period, with another £149 expected in January.
Guardian Business reports that Britain’s government energy price cap will increase by 4% from October, after global market prices rose again. The change comes after an earlier 13% climb at the start of July, leaving millions facing higher winter energy charges.
Ofgem said the new cap applies to about 22 million households, and it equates to £1,723 a year for a typical household’s gas and electricity use, versus £1,663 for the July to September period. The regulator also forecast the cap could rise further in January by the equivalent of £149 a year, which Cornwall Insight said would take the average annual bill to £1,872.
The article says roughly a third of households on fixed-rate energy deals will not be affected by the cap increase. It also notes pressure on the UK government to address high energy costs, including a pre-election 2024 pledge to cut bills by £300 a year by 2030 and the prime minister’s plan to remove VAT from electricity bills announced soon after taking office.
According to the report, energy market prices are the biggest component of energy bills, representing £812 of the average bill under the October cap, about 78% higher than before the Ukraine crisis began. The government said bills are being driven by the war in Iran and that it will continue to look for ways to protect families from unaffordable costs.