Household energy bills are set to rise before winter as Ofgem announces its new price cap today. The typical household will pay £17 more per year, bringing annual bills to £1,737 from October 1st.
Cornwall Insight forecasts the one per cent increase affects around 21 million households across England, Scotland and Wales on standard variable tariffs. The rise comes despite government efforts to expand support for vulnerable families.
Winter support measures
The increase partly reflects costs from expanding the Warm Home Discount scheme. An additional 2.7 million households will receive £150 support, though this adds approximately £15 to typical bills for all customers.
Dr Craig Lowrey from Cornwall Insight said: "News of higher bills will not be welcomed by households, especially as winter approaches. While the added costs behind this forecasted rise are aimed at supporting those most in need, it does mean typical bills will increase despite relatively lower wholesale costs."
Market volatility concerns
According to The Standard, wholesale energy prices remain volatile due to geopolitical factors including uncertainty over US trade policy. Cornwall Insight expects a small drop in January's price cap, though this depends on weather patterns and policy changes.
Express reports show 6.1 million households spend over 10 per cent of their income on energy, with two million in debt or arrears. Meanwhile, Birmingham Mail analysis suggests fixed-rate deals could save households up to £257 compared to the predicted cap.
Government response
A Department for Energy Security and Net Zero spokeswoman said: "The only way to bring down energy bills for good is with the Government's clean energy superpower mission, which will get the UK off the rollercoaster of fossil fuel prices and on to clean, homegrown power that we control."
The price cap sets maximum charges suppliers can impose per kilowatt hour but doesn't limit total bills as households still pay for actual consumption. Ofgem reviews the cap every three months based primarily on wholesale energy costs.
Lowrey added: "The real hope for lasting relief lies in the longer-term transition towards clean power and energy independence, which offers the greatest prospect of both stability and lower costs."
Sources used: "The Standard", "BBC", "Birmingham Mail", "Express" Note: This article has been edited with the help of Artificial Intelligence.
