Household energy bills to hit three-year high as Ofgem announces 4% rise from October
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Household energy bills are set to rise to the highest level for three years, with Ofgem’s price cap increasing by 4% from October. This reflects the surge in wholesale gas prices, impacting both variable and fixed tariff customers.
Image source: Getty Images
According to Ofgem, a typical household using a standard amount of gas and electricity will see their annual bill rise by £60. While over a third of households are on fixed tariffs, the price cap change will affect 22 million homes in England, Wales, and Scotland.
Neil Kenward, Ofgem’s director general for markets, stated: "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." He further encouraged consumers to consider fixed tariffs for savings.
The government has announced a VAT cut on electricity bills, applicable to both variable and fixed deals, effective October.
Related topics:
- Personal finance
- Money
- Cost of Living
- Energy industry
- Ofgem
