UK energy bills are set to rise this autumn, reigniting fears of growing energy poverty, according to Friday’s announcement by industry regulator the Office of Gas and Electricity Markets (Ofgem).
After dips in April and July, the capped bills for gas and electricity in an average household will soar 10% from 1 October. This hike means households should expect to add “roughly £12 per month to an average bill”, making for an estimated yearly bill of around £1,717 (approximately €2,024), Ofgem detailed in a statement.
Every quarter, the regulator sets energy price caps. These account for shifts in international markets and aim to secure the most suitable price for both suppliers and consumers.
Despite the quarterly increase, Ofgem stated that bills would still be 6% lower than the same period last year and nearly half the amount during the peak of the 2022 energy crisis.
However, the National Energy Action (NEA), an organisation combatting energy poverty, warned that the October increase in bills might plunge an additional 400,000 UK households into energy precariousness this winter, meaning a total of 6 million would now be in this situation.
The NEA reported that the situation could worsen as Rachel Reeves, Finance Minister of the new Labour government, has already proposed cuts to certain winter heating oil aids for retirees, suggesting they should be linked to income conditions.
Ofgem explained in their statement that the increase is primarily caused by rising international energy market prices – driven by escalating geopolitical tensions and extreme weather events fuelling competition for gas.
