Particle.news

Download on the App Store

UK Energy Bills Forecast to Edge Up 1% as Ofgem Sets New Price Cap

Fixed deals now undercut the predicted cap, offering a way to cut costs before Ofgem confirms the new rates.

Image
Image
Image

Overview

  • Ofgem is due to announce the October–December cap on August 27, with Cornwall Insight forecasting a rise of about £17 to roughly £1,737 for a typical household.
  • The latest forecast factors in an assumed expansion of the Warm Home Discount, which would add about £15 to a typical bill while providing a £150 payment to 2.7 million additional people.
  • More than 22 million households on standard variable tariffs are directly affected by cap changes, which limit unit rates rather than total bills and vary by usage and payment method.
  • Suppliers are pitching fixes below the predicted cap, including EDF’s Simply Fixed Aug26v11 at about £1,634 and Outfox Energy offers near £1,463, though deals may carry exit fees or be withdrawn.
  • Consumer advisers urge households to consider switching or changing how they pay, with direct debit typically costing about £135–£138 less than standard credit as affordability pressures and record energy debt are reported.