Published • loading... • Updated
Britons face highest price cap in three years as energy bills rise 4% from October
The average household bill will rise to £1,723 a year as higher wholesale gas costs keep pressure on consumers.
- Ofgem raised the energy price cap by 4% effective October 1, reaching a three-year high for households in England, Scotland, and Wales. The adjustment increases average annual bills by £60, or £5 per month, to £1,723.
- Wholesale gas prices are driving this increase, exacerbated by the ongoing Middle East conflict and the Iran war. Recent European heatwaves have boosted gas demand for power generation to meet cooling needs.
- Analysts at Cornwall Insight released a forecast on Wednesday predicting a further 9% rise in the price cap for the New Year. Gas costs are now more than 150% higher than at the end of 2020.
- Energy Secretary Miatta Fahnbulleh announced the Government is cutting VAT on electricity bills from October to provide relief. Fahnbulleh stated the Government "will keep looking at what more we can do to protect families from unaffordable bills."
- Households can mitigate costs by choosing fixed tariffs, currently available at £100 or more below the October price cap. Prepayment customers may save an average of about £45 compared to direct debit payment.
Insights by Ground AI
16 Articles
16 Articles
Coverage Details
Total News Sources16
Leaning Left2Leaning Right5Center7Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
14%
C 50%
R 36%
Factuality
To view factuality data please Upgrade to Premium
