27 August 2025 , 12:46
668
0
Energy costs are set to rise more than anticipated for millions of British households this autumn, as the price cap for a typical annual dual-fuel bill has increased by 2% to £1,755.
The energy regulator for Great Britain, Ofgem, will elevate the cap on gas and electricity charges from October, amounting to just over £35 more per year for the average home as colder weather approaches.
The increase is partly due to an expansion of the government’s warm home discount scheme, which is expected to add about £15 to a typical bill while providing an extra 2.7 million households with a £150 reduction in their bills, according to analysts at Cornwall Insight, an energy consultancy.
Around 9 million households who purchase their energy through variable tariffs will see an immediate effect on their bills when the cap comes into effect in October. Households could face even higher bills if they consume more energy than the typical amount.
This is because the cap, which is recalculated every three months, restricts the rate energy suppliers can charge customers for each unit of gas and electricity – not the total bill.
The price of electricity will increase from 25.73p per kilowatt-hour over the summer to 26.35p a kWh from October under the price cap, whereas the price of gas will decrease to 6.29p a kWh from 6.33p a kWh over the summer, reflecting modest drops in wholesale market prices.
Standing charges will also rise to help cover the costs of maintaining and upgrading Great Britain’s energy networks. The electricity standing charge will increase from 51.37p a day to a rate of 53.68p, while the standing charge for gas will rise from 29.82p per kWh to 34.03.
Responding to the price cap announcement, the Labour party attributed high bills to the previous government’s policies toward renewable energy and criticized the Reform leader Nigel Farage’s plans to move away from greener energy sources.
“Energy bills skyrocketed under the Conservatives because they linked our country to the fossil fuel rollercoaster, and working people are still bearing the cost,” a spokesperson said.
“From banning onshore wind to failing to implement new nuclear, their reckless decisions have left Britain vulnerable to wholesale gas prices that remain 75% higher than before Putin’s invasion of Ukraine.
“That’s why Nigel Farage’s unpatriotic war on clean energy would be an utter disaster for families, businesses, and our economy. His destructive plans would drive bills higher, eliminate nearly a million jobs, and abolish billions of pounds of crucial investment nationwide that will reinforce our energy security.
“This Labour government’s plan for change is protecting consumers, with 3 million more families receiving £150 off their bills through the warm home discount, totaling 6 million in all, as we continue to invest in clean local power to reduce energy bills permanently."
Politics Editor