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UK households face 4% jump in energy bills from October, to £1,723
The UK energy secretary said the government cut VAT on electricity bills from October, aiming to limit the price cap increase and pressure for further reforms to lower bills.
UK households are set to see a 4% increase in energy bills from October, with the average annual bill rising to £1,723, as the government prepares additional measures to support families facing higher costs, according to the Guardian Business.
The report says Energy Secretary Miatta Fahnbulleh pointed to the Iran war as a driver of higher bills, and said the government has cut VAT on electricity bills from October to provide some “breathing space,” after removing £150 in costs from bills earlier this year.
Fahnbulleh also said the government will explore “fundamental reforms” to reduce energy bills for good, including investment in renewable energy to break the connection between high gas costs and household bills.
The piece adds that Ofgem’s director general for markets, Neil Kenward, defended the latest increase in the energy price cap, arguing it protects consumers from higher energy prices and that suppliers earn only a small profit margin, just over 2.5%.