UK energy regulator Ofgem has confirmed that the average household energy bill will rise by £149 in October, with the price cap for a typical household in England, Scotland, and Wales increasing by 10%. The cap will go from £1,568 to £1,717, adding around £12 per month to the average bill.
The rise in energy costs comes amid rising prices in the international energy market, driven by heightened political tensions and extreme weather events, according to Ofgem. While this increase is significant, the new cap is still £117 lower than the cap set in October last year, which stood at £1,834.
Household Energy Bills to Increase as Winter Approaches
Jonathan Brearley, Ofgem’s chief executive, acknowledged the challenges many households will face with the increase, stating, “We know that this rise in the price cap is going to be extremely difficult for many households. Anyone who is struggling to pay their bill should make sure they have access to all the benefits they are entitled to, particularly pension credit, and contact their energy company for further help and support.”
Brearley also encouraged consumers to explore their options and consider switching to a fixed-rate tariff that could help them save on their energy bills.
Energy Secretary Ed Miliband Responds to Price Cap Increase
Energy Secretary Ed Miliband expressed concern over the price cap increase, calling it “worrying” for many people across the UK. He criticized the rise as a consequence of a “failed energy policy” that has left the country vulnerable to fluctuations in the global gas market.
“This will be deeply worrying news for many families,” Miliband said. The rise in the price cap is a direct result of the failed energy policy we inherited, which has left our country at the mercy of international gas markets controlled by dictators.”
Miliband emphasized that the government’s long-term solution to reduce bills lies in boosting clean, homegrown energy production. “That’s why we have hit the ground running, lifting the onshore wind ban, consenting unprecedented amounts of solar power, and setting the largest-ever budget for our renewables auction.”
He also assured the public that the government would continue to work to protect billpayers, including reforming the energy regulator, making standing charges fairer, and implementing a Warm Homes Plan to help families save money.
What Should Consumers Do?
With energy prices set to rise, consumers are advised to explore potential benefits they may be eligible for, such as pension credit, and to contact their energy suppliers for support if they are struggling to pay their bills. Ofgem also recommends shopping around for fixed-rate tariffs, which could offer savings during this challenging period.
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