Millions of households are bracing for a hike in energy bills this winter following Ofgem’s latest price cap announcement. From October, the cap will surge by 2% – a figure higher than the anticipated 1% increase – leading to increased bills for millions of families across England, Scotland and Wales.
For an average dual-fuel household paying via direct debit, the typical annual bill is set to rise from £1,720 to £1,755. Prepayment customers will witness their bills jump from £1,672 to £1,707, while those who pay upon receipt of their bill will see an increase from £1,855 to £1,890.
Are rising energy bills a worry for you this winter? Should the price cap be held down to protect households? Have your say in our comments section.
Ofgem emphasised that the cap does not represent an absolute limit on bills but rather a restriction on unit rates and standing charges. The cap undergoes review every three months, implying prices could fluctuate again come January.
Standing charges, which are paid daily irrespective of usage, are also on the rise. For electricity, the standing charge will escalate from 51.37p to 53.68p a day, while for gas it will increase from 29.82p to 34.03p.
The unit rate for electricity will slightly rise from 25.73p to 26.35p per kWh, whereas the gas unit rate will marginally drop from 6.33p to 6.29p
