UK energy bills to rise 10% this winter – Ofgem

British households will face higher gas and electricity bills this winter after Ofgem, the energy regulator, announced a 10 per cent rise in the energy price cap for October to December.

The new cap means the average household will pay £1,717 annually, up from £1,568.

This marks the first increase since January and affects approximately 27 million homes, leaving bills significantly higher than pre-2022 levels amid the ongoing energy crisis sparked by Russia’s invasion of Ukraine.

Ofgem’s chief executive, Jonathan Brearley, acknowledged the difficulty this rise poses for many households and suggested that elevated gas prices may persist for an extended period.

The decision arrives at a challenging time for the Labour government, which has recently cut winter fuel payments for higher-income pensioners, facing criticism over these measures.

Chancellor Rachel Reeves justified the cuts as necessary to address a substantial fiscal deficit inherited from the previous administration.

Energy Secretary Ed Miliband described the price hike as “deeply worrying” and emphasised the government’s commitment to reducing bills through renewable energy initiatives.

Meanwhile, opposition voices have criticised the government’s approach, highlighting concerns over its impact on vulnerable populations.

The energy price cap, established in 2019, limits the maximum charges energy companies can apply to default tariffs and is adjusted quarterly based on wholesale prices.

The latest increase reflects ongoing volatility in gas supplies and inflationary pressures affecting energy costs.

As the government works to balance affordability and sustainability, the rise in the price cap underscores the significant challenges ahead in ensuring energy security and economic stability for households across Britain.

Attribution: Ofgem, The Financial Times

Subediting: M. S. Salama