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Ofgem Lifts Energy Price Cap 2% From October, Taking Typical Bill to £1,755

Ofgem attributes the increase to policy charges, with higher network costs outweighing flat wholesale prices.

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Overview

  • The cap for a typical dual‑fuel household paying by direct debit will rise by about £35 a year, or £2.93 per month, from 1 October to the end of December.
  • Standing charges and unit rates will shift, with electricity standing charges moving to 53.68p per day and gas to 34.03p, while the electricity unit rate rises to 26.35p/kWh and gas dips to 6.29p/kWh.
  • The expanded Warm Home Discount adds roughly £15 to the average bill and delivers a £150 rebate to 2.7 million additional households, taking total recipients to about six million.
  • Around 34 million people are covered by the cap, and Ofgem says some fixed tariffs are more than £200 cheaper than the new level, with switching to direct debit from standard credit offering potential savings of about £135.60 a year.
  • Energy consultancy Cornwall Insight had forecast a smaller October rise to roughly £1,737 and currently projects a possible fall in January to around £1,712, contingent on market conditions and policy costs.