Ofgem to Lift Winter Energy Cap 4% to £1,729 as Gas Prices Jump 61%
Updated
Updated · bbc.co.uk · Aug 25
Ofgem to Lift Winter Energy Cap 4% to £1,729 as Gas Prices Jump 61%
3 articles · Updated · bbc.co.uk · Aug 25
Summary
£1,729 a year is the new typical annual bill analysts expect from October, up from £1,663 and the highest level in three years for households on variable tariffs.
A 61% rise in average wholesale gas prices over the past three months is driving the increase, with Ofgem's cap for about 33 million homes due to reset for October to December.
About 40% of billpayers on fixed tariffs will avoid the immediate increase, but those on variable deals in England, Scotland and Wales will face higher unit rates as colder weather arrives.
£6 billion in energy debt has already built up and could reach £7 billion by year-end, prompting calls for a social tariff and debt relief even as the government says a VAT cut should trim about £50 from annual electricity bills.
Bills remain about 70% above pre-2022 norms, underscoring how the UK is still exposed to international gas-market shocks after the energy crisis triggered by Russia's invasion of Ukraine.