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UK energy bills to rise 4% from Oct 1 under new price cap
Gas and electricity prices will increase by 4% from 1 October, taking the default-tariff rate for 22 million households to the equivalent of £1,723 a year on typical usage.
Gas and electricity prices in Great Britain are set to rise by 4% from 1 October under the government’s new energy price cap, a move expected to affect households as they prepare to turn heating back on for colder months, according to the Guardian Business.
The outlet reports that the change will be the second increase in three months, following a 13% rise at the start of July. It also says the higher cap will lift the rate for 22 million households on default tariffs to the equivalent of £1,723 a year based on typical gas and electricity usage.
About 11 million homes, or 35% of the total, are already on fixed energy tariffs and will not be affected by the October rise. Fixed tariffs typically set a standing charge and unit costs for one or two years, which can protect households until their current deal ends.
The report notes that Ofgem said savings are available by choosing a fixed tariff, with fixed options at £100 or more below the October price cap, while the regulator also urged households to cut energy use where possible.