Overview
- Ofgem’s cap for a typical dual‑fuel household paying by direct debit increases by about 2% to £1,755 from 1 October, roughly £35 more a year.
- Standing charges are set to rise, with reports citing about a 4% increase for electricity and 14% for gas, adding around 7p a day on gas bills.
- Suppliers are promoting under‑cap fixes: British Gas has a limited‑time tariff £168 below the October cap that closes at 10pm on Wednesday, and Octopus is telling variable‑tariff customers its fixed rates are currently its cheapest.
- Utility Warehouse has launched short‑window fixed tariffs this week priced in the mid‑£1,560s to £1,570s, undercutting the incoming cap.
- The Treasury is reported to be considering removing the 5% VAT on domestic energy, which would save about £86 a year, as consumer advocates weigh VAT cuts against reducing standing charges; Uswitch says some households can save about £241 by switching before November.