Overview

• The new cap applies from October 1 to December 31 and will be reviewed again for January.
• Ofgem says around 20 million households on default tariffs will see the change, with typical annual costs set at £1,755 by direct debit, £1,707 for prepayment and £1,890 for standard credit.
• The Warm Home Discount expansion will add about £15 to the average bill while providing £150 to 2.7 million additional people, taking support to roughly six million beneficiaries.
• Millions on fixed-price deals are insulated from the cap change until their contracts end, and Ofgem advises households to consider fixing and to pay by direct debit to cut costs.
• Charities and consumer groups warn the rise will deepen hardship for households already in fuel poverty and call for targeted support and wider energy-system reforms.