The next Ofgem energy price cap has been announced – and it is double what households had braced for.
Millions of people will see their energy bills go up by 2% within weeks after the regulator’s confirmation today.
Households had initially expected their energy bills to rise by 1% based on forecasts.
But the higher cap will allow energy companies to charge slightly more from October.
The energy price cap, which is set by Ofgem, limits how much the companies can charge consumers.
Sign up for all of the latest stories
Start your day informed with Metro’s News Updates newsletter or get Breaking News alerts the moment it happens.
When does the latest energy cap start?
The new energy prices will start from October 1 for typical households in England, Scotland and Wales.
How much will bills rise?
The 2% increase means an average household will have to dish out around £2.93 more each month.
A home using the default tariff will pay £102 a month instead of £100.
However, those using a fixed tariff are protected from the upcoming rise.
Around 37% of energy customers have switched to a fixed tariff.
Martin Lewis said yesterday ahead of the announcement: ‘If you’re not on a fix, consider it asap.’
Tim Jarvis, director general of markets at Ofgem, said: ‘While there is still more to do, we are seeing signs of a healthier market.
‘There are more people on fixed tariffs saving themselves money, switching is rising as options for consumers increase, and we’ve seen increases in customer satisfaction, alongside a reduction in complaints.
‘While today’s change is below inflation, we know customers might not be feeling it in their pockets.
‘There are things you can do though – consider a fixed tariff as this could save more than £200 against the new cap.
‘Paying by direct debit or smart pay-as-you-go could also save you money.
‘In the longer term, we will continue to see fluctuations in our energy prices until we are insulated from volatile international gas markets.
‘That’s why we continue to work with Government and the sector to diversify our energy mix to reduce the reliance on markets we do not control.’
Got a story? Get in touch with our news team by emailing us at webnews@metro.co.uk. Or you can submit your videos and pictures here.
For more stories like this, check our news page.
Follow Metro.co.uk on Twitter and Facebook for the latest news updates. You can now also get Metro.co.uk articles sent straight to your device. Sign up for our daily push alerts here.
