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Ofgem Lifts Energy Price Cap 2% to £1,755 as Higher Standing Charges Bite

Higher standing charges driven by policy costs explain the increase despite a wholesale dip.

Overview

  • From today the cap for a typical dual‑fuel household rises to £1,755, with standing charges up about 4% for electricity and 14% for gas, partly linked to the expanded Warm Home Discount.
  • Ofgem reports household energy debt at a record £4.4bn and says a debt‑relief scheme with government and industry is due to be finalised before the end of the year.
  • The government has widened the £150 Warm Home Discount to an estimated 6.1 million households this winter after removing the “hard to heat” criterion.
  • Consumer advisers urged action as more than seven million households were told to submit meter readings; about 22 million remain on standard variable tariffs, with opportunities to switch to cheaper fixed deals.
  • The cap rose despite a roughly 2% fall in wholesale prices over the quarter, reflecting policy, network and balancing costs, while National Energy Action says 58% of households plan to ration energy use this winter.