Energy price cap rise: Millions of households in London face double blow - what will it mean for your bill?

Household energy bills to rise PA Matt Watts , News Editor | Nicholas Cecil , Chief Reporter @ nicholascecil 1 minute ago COMMENTS Households will pay more on their energy bills from October after Ofgem raised its price cap by 4% to a three-year high.

The regulator said the price cap will rise by £60 per year – or £5 per month – to £1,723 for the average household using both electricity and gas if this level was sustained for a year.

It means, in short, that the average annual energy bills will rise by £60 for a typical household in October.

The rise is a blow to millions of households struggling with the cost of living as inflation remains stubbornly high.

While experts have warned households should brace for a double blow, with October’s rise in the energy price cap will likely be followed by another hefty increase in January.

Ofgem's price cap, set every three months, puts a limit on how much suppliers can charge per unit of energy, so homes that use high amounts of energy will pay more than the typical figure announced, and households which use less energy should pay less.

October's price cap will cover the period from 1 October to the end of this year.

Millions of households in London will be hit with higher energy bills AFP/Getty The next cap, covering 1 January 2027 to 31 March 2027, is due to be announced on 25 November.

Ofgem said the increase reflected higher wholesale gas prices as a result of the ongoing conflict in the Middle East, with volatile global markets remaining the dominant driver of price changes.

Neil Kenward, Ofgem’s director general for markets, said: “High international gas prices are continuing to drive energy costs in the UK.

“We welcome the Government’s intervention to remove VAT from electricity bills, without which customers would have faced even higher costs this winter.

“Savings are available by choosing a fixed tariff, which are available at £100 or more below the October price cap, and many suppliers offer tariffs with cheaper electricity to smart meter customers for electricity consumed out of peak times.

Households brace for winter energy squeeze as Ofgem to reveal October price cap

“It’s also worth considering different payment methods, with prepayment customers paying the lowest price cap rates, and could save consumers an average of about £45 compared to direct debit.”