British Gas Octopus Energy: Gas and electricity prices to rise by 2% in October - under latest price cap announced by Ofgem
Gas and electricity bills will rise by 2% for millions of households in October under the latest price cap announced by energy regulator Ofgem.
The increase, which is slightly more than expected, means a household using a typical amount of energy will pay £1,755 a year, up £35 a year on the current cap. The increase will kick in at the start of October, which campaigners say will mean another winter of relatively high energy bills.
Ofgem's cap sets the maximum price that can be charged for each unit of gas and electricity for about 20 million households in England, Scotland and Wales. Individual households can calculate their estimated specific change by adding £2 onto every £100 they spend at the moment on energy each year.
The cap sets the price for each unit, but not the total bill which depends on how much energy you use. The change comes into force at the start of October and lasts for three months.
Ofgem changes the cap, largely based on the cost of energy on wholesale markets. However, the rise in bills this time is partly the result of extra support measures, previously announced by the government and in place this winter.
Energy minister Michael Shanks said: “We know that any price rise is a concern for families. Wholesale gas prices remain 75% above their levels before Russia invaded Ukraine. That is the fossil fuel penalty being paid by families, businesses and our economy.
“That is why the only answer for Britain is this government’s mission to get us off the rollercoaster of fossil fuel prices and onto clean, homegrown power we control, to bring down bills for good. At the same time, we are determined to take urgent action to support vulnerable families this winter.
“That includes expanding the £150 warm home discount to 2.7 million more households and stepping up our overhaul of the energy system to increase protections for customers.”