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Ofgem Lifts Energy Price Cap 2% To £1,755 From October

The larger-than-expected increase is driven chiefly by expanded Warm Home Discount costs alongside higher electricity balancing charges.

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Overview

  • From 1 October to 31 December, the typical dual‑fuel direct‑debit bill will average £1,755, about £35 a year or £2.93 a month more than now.
  • Ofgem cites higher electricity balancing costs adding roughly £1.23 per month and the Warm Home Discount expansion adding about £15 per year to average bills.
  • Around 34 million accounts fall under the cap, with roughly 20 million on standard variable tariffs and about 37% of customers on fixed deals that are shielded until their contracts end.
  • The Warm Home Discount will provide £150 to an additional 2.7 million people this winter, taking support to roughly six million households even as its costs feed into bills.
  • Consumer groups warn of rising hardship heading into winter, while Ofgem and ministers urge households to consider fixed tariffs, pay by direct debit, and submit meter readings, with analysts forecasting a possible small drop in January subject to market and policy factors.