Gas and electricity prices are projected to rise modestly during the autumn and winter months, with a new energy price cap set to take effect on 1 October. This change follows a decrease in prices observed at the beginning of July, although affordability remains a concern for many households.
The energy price cap, which affects approximately 21 million households in England, Wales, and Scotland, is updated every three months by Ofgem. This cap determines the maximum rate that can be charged for energy consumption under standard variable tariffs for typical dual-fuel households paying via direct debit. As of July, the annual bill for an average dual-fuel household was £1,720, down from the previous cap by £129. The current cap includes gas prices at 6.33p per kilowatt hour (kWh) and electricity at 25.73p per kWh until September 2025.
Households that pay their bills every three months by cash or cheque incur higher charges, while prepayment customers typically pay slightly less. Notably, the price cap does not apply to Northern Ireland, which operates under a different energy market.
To clarify, a “typical household” as defined by Ofgem uses about 11,500 kWh of gas and 2,700 kWh of electricity annually, with payment settled through direct debit. Home energy usage can vary widely due to factors such as property type, energy efficiency, and the number of occupants.
Customers are encouraged to submit meter readings when the cap changes to ensure they are not charged inaccurately. For prepayment customers—numbering around four million as of January 2025—typical annual bills are about £1,672, which is slightly lower than those on direct debit.
The availability of fixed-price deals, while unaffected by the cap, can provide price stability but may incur penalties for early termination. The government’s Household Support Fund, along with the Warm Home Discount scheme and other assistance programs, aims to support vulnerable households facing payment challenges.
Source: https://www.bbc.com/news/articles/cdd29v8mp9jo?at_medium=RSS&at_campaign=rss