Overview
- From 1 October, the cap for a typical dual‑fuel household paying by Direct Debit increases 2% to £1,755, affecting unit rates and standing charges for standard variable tariffs rather than total bills.
- EDF, OVO and E.ON are telling variable‑tariff customers that prices will update automatically and advising against changing Direct Debits before account reviews, with prepayment prices updating on top‑up from 1 October.
- Uswitch says around 22 million households on default tariffs could save by switching, with some fixed deals undercutting the October cap and potential annual savings of about £292.
- Rising network costs and higher standing charges are cited as key drivers, with reported increases of 4.5% for electricity and 14% for gas standing charges putting extra pressure on low‑usage households.
- A Resolution Foundation report finds energy arrears have more than tripled since 2012, with over one million electricity and around 900,000 gas customers behind on bills by end‑2024, prompting calls for targeted help such as the Warm Home Discount and supplier hardship funds.