Energy price cap: Power bills to rise by almost £150 after Ofgem increases price cap by 10%

Sincere support
Independent News

learn moreclosure

Our mission is to provide unbiased, fact-based reporting that holds power accountable and reveals the truth.

Whether it’s $5 or $50, every contribution counts.

Support us in journalism without an agenda.

British families will face higher Energy bills This winter, regulators have stepped up Price ceiling 10%.

Ofgem It was announced that the average household energy bill will increase from £1,568 to £1,717 from October 1. This means that the annual energy bill for an average household will increase by £149.

The regulator sets price limits for each unit of energy based on a number of factors, including wholesale energy prices – which is what energy suppliers pay before they supply gas and electricity to households.

limit Change every three months – January, April, July and October. Energy prices I fell twice this year. – in April and July – but will pick up.

For those paying their standard variable electricity tariff by direct debit, electricity costs an average of 24.5p per kilowatt-hour (kWh) with a daily fixed charge of 60.99p, and gas costs an average of 6.24p per kWh with a fixed charge of 31.66p.

Still, average bills are 6% lower than a year ago and well below Peak of the energy crisisCosts in an already volatile energy market rose to a high of £4,059 in the first quarter of 2023, driven by Russia’s invasion of Ukraine.

Urging consumers to “shop around” and consider opting for a fixed rate electricity tariff, Ofgem chief executive Jonathan Brearley said: “We know that the increase in the price cap will be extremely difficult for many households.

“Anyone struggling to pay their bills should make sure they are getting all the benefits they are entitled to, particularly pensions, and contact their energy company for further help and support.”

He added: “We are working with government, providers, charities and consumer groups to do everything we can to support customers, including long-term fixed charge reforms, and measures to tackle debt and affordability.”

Cornwall Insight also said there could be a further “small” increase in January 2025, and further increases early in the new year as tensions rise over the war between Russia and Ukraine.

Jesse Ralston, head of energy and climate intelligence, said winter electricity bills would be around 50% higher on average than before the crisis.

“While international market fluctuations have caused gas bills to soar, our reliance on gas has not fallen much in recent years due to a lack of progress in energy efficiency and heat pumps,” she said.

“With the winter fuel payment cancelled for some pensioners and bills rising, some people may be left struggling and it remains to be seen whether the government will take steps to support those hardest hit by the removal of the winter fuel payment.”

this New Government Decide End winter fuel subsidies For those not receiving a pension or other means-tested benefit, it is the first change to the benefit since it was introduced in 1997 for all pensioners.

The Treasury said the changes would see the number of pensioners receiving the maximum £300 pension fall from 11.4 million to 1.5 million, leaving almost 10 million people without a pension.

The government has since urged pensioners to Check if they have claimed a pensionan estimated 800,000 retirees are not receiving benefits despite being eligible. The Pension Benefit increases weekly income for all people aged 66 and over to £218.15, or £332.95 for couples.

A Labour spokesman said: “This price rise is the result of 14 years of Tory neglect and failure to prepare and invest in clean energy in the UK.

“The Labour Government has set about tackling high energy prices. In less than 50 days, we have established Great British Energy to radically cut electricity bills, lifted the ban on onshore wind, approved an unprecedented amount of solar power, and set the largest ever budget for our renewable energy auctions.

“Labor’s bold energy plan will warm homes across the country, permanently lower energy bills and create thousands of highly skilled, well-paid jobs as we move towards cheaper, more local, clean energy.”

Mr Brearley warned that rising energy prices were being driven by higher international gas prices and that the UK was “going to be in this world until we get out of it”. He said: “Before we build different infrastructure to get a different energy system, what we all need to do is make the best of the situation we are in and look after our most vulnerable customers.”

The Liberal Democrats said ministers must take “urgent action” to address the “Tory legacy”. But Conservative shadow energy secretary Claire Coutinho said: “Instead of prioritising cheap energy, the new Labour government is pursuing Ed Miliband’s reckless net zero emissions target without regard to the cost.”

The campaign group “Warm This Winter” accused energy companies of “profiteering”, with 20 companies Profits of over £470 billion since 2020. A spokesman said: “It shows there is money in the system but it is going to energy bosses and their shareholders when it should be going to ordinary people.”

The End Fuel Poverty Coalition has urged ministers to introduce a plan to support households this winter, saying: “Ending energy debt, expanding the Household Support Fund, extending the Warm Homes Discount and adjusting fixed charges will all help mitigate the impact of high bills and winter fuel subsidy cuts.

“But as well as support for this winter, the public also needs to see a clear timeline for when the real benefits of cheap renewable energy and warm homes schemes will be apparent.

“To make matters worse, details of today’s Ofgem announcement show that energy suppliers’ profit margins will increase by 11%.

“In addition, we hear about huge profits every month for major companies in the energy industry. It’s time to tax these companies fairly, not just fossil fuel producers, and use that money to keep people warm now and in the long term.”