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New Ofgem Price Cap Will See Energy Bills Rise for Millions

Ofgem's 2% increase raises the average UK household energy bill to £1,755 annually, 54% higher than pre-crisis levels, intensifying financial pressures on consumers.

  • On October 1, Ofgem will introduce a 2% rise to the energy price cap covering England, Scotland and Wales as part of its routine quarterly update.
  • Driven by post-2021 price shifts, the new cap is £617 higher than pre-crisis charges, a 54% increase since the autumn of 2021, while wholesale gas prices remain 75% above levels before the Ukraine invasion.
  • A typical dual-fuel household will now pay £1,755 annually, with the increase adding £35 a year and fixed tariffs protecting roughly 37% of customers.
  • Citizens Advice Scotland called the 2% price cap rise `unacceptable` and Advice Direct Scotland urged a social energy tariff as advisers brace for more calls via an online advice portal and helpline.
  • Ministers are being urged to set out plans over the coming years to support struggling households and prioritise energy upgrades, while expanding the Warm Home Discount to 2.7 million more people despite costs remaining 625 pounds lower than early 2023.
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caithness-business.co.uk broke the news in on Wednesday, August 27, 2025.
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