Households across the UK are preparing for another energy hike, with many misled by assuming the new price cap limits a cap on how much you pay for your energy. Get the latest top news stories sent straight to your inbox with our daily newsletter We have more newsletters Get the latest top news stories sent straight to your inbox with our daily newsletter We have more newsletters Ofgem has confirmed that household energy bills will be set to rise this coming winter, as they released their new energy price cap, which will see a rise of 10 per cent from October. But what does this mean for your bills? The sector regulator confirmed on Friday morning that annual energy bills for millions of households on the standard tariff, with typical average usage, will rise from £1,568 to £1,717 from October 1.
This marks an increase of £149 over the coming year. With people across the UK attempting to slash costs where possible , who will be affected and what does the price cap mean? Every three months, in January, April, July and October, Ofgem reviews and sets the cost at which an energy supplier can charge for every unit of energy and daily standing charges, under what they call the price cap. The main factor it takes into account when working out its new price cap is the cost of wholesale energy.
The assessment period for wholesale energy prices for the new October price cap was from May 17, 2024, to August 16, 2024. The price cap also ensures that prices for people on a standard va.