UK household energy bills to rise 10% from October
UK energy regulator Ofgem announced a 10% increase in the price cap on household energy bills, raising the cap to £1,717 ($2,250) per year starting October 1. This is the first increase since January 2023, when the cap hit a record high of £4,279. The new cap, effective until December 31, is £117 cheaper than the same period last year but still reflects ongoing volatility in global gas markets.
The rise is attributed to severe weather events and geopolitical instability, including the war in Ukraine, which have driven up wholesale gas prices. Ofgem CEO Jonathan Brearley noted that the price hike is due to reliance on a volatile global gas market and said, “We know that this rise in the price cap is going to be extremely difficult for many households.” Currently, bad debts related to energy bills have reached a record £3.1 billion.
The increase is slightly higher than expected, as energy consultancy Cornwall Insight had predicted a 9% rise. The ongoing energy crisis and the impact of Russia’s invasion of Ukraine continue to affect gas and electricity prices, despite some stabilization.
UK Energy Secretary Ed Miliband criticized the situation, attributing the high costs to past energy policies that left the country vulnerable to international gas markets. He emphasized the need for clean, homegrown power to reduce bills and achieve greater energy independence.