Ofgem Price Cap Set to Rise 4% in October
Ofgem Price Cap Set to Rise 4% in October

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Arabic version: سقف أسعار أوفغيم يرتفع 4% في أكتوبر

According to BBC News, household energy bills for millions of people will rise to their highest level for three years when Ofgem’s price cap increases by 4% in October. The regulator said a household using a typical amount of gas and electricity would pay £60 more a year if the new level were sustained for a full year.

The cap will rise by £5 a month to £1,723 a year for an average dual-fuel household. It limits the price suppliers can charge for each unit of gas and electricity, rather than setting a total bill, meaning final costs depend on energy use. Ofgem’s typical annual-use estimate is 9,500 kWh of gas and 2,500 kWh of electricity.

About 35% of households, or 11 million, are already on fixed tariffs and will not see their prices change. However, 22 million households in England, Wales and Scotland are on tariffs affected by the cap. Ofgem said high international gas prices were continuing to drive UK energy costs, while Energy UK said the average gas price had been 61% higher over the past three months than in late 2025.

The government said VAT would be cut from electricity bills in October, including for customers on fixed deals. Energy Secretary Miatta Fahnbulleh said ministers would “keep looking at what more we can do to protect families from unaffordable bills”. Energy UK estimated total energy debt had risen to £6bn and could reach about £7bn by the end of the year, while debt charity StepChange said people seeking help often had average energy debts of £2,600 on top of other commitments.

Cornwall Insight has forecast that domestic energy prices could rise a further 9% in the new year. Ofgem said fixed tariffs were available at £100 or more below the October cap, while suppliers and debt charities urged households expecting difficulty to contact their supplier and seek support.

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