Summary
Energy prices in the UK are expected to rise slightly this autumn and winter, as predicted by analysts ahead of Ofgem's announcement of the new energy price cap. The cap for October to December will impact gas and electricity prices for millions of households. Government support measures are in place to assist vulnerable households during this period of increased costs.
Key Facts
- Ofgem will announce the new energy price cap that sets the maximum cost per unit for gas and electricity in England, Scotland, and Wales.
- Analysts expect a 1% annual increase in energy prices from October 2023.
- The typical household energy bill is predicted to rise by £17 to £1,737 per year.
- The price cap change takes effect at the start of October and lasts for three months.
- Vulnerable households receiving benefits will automatically get a £150 Warm Home Discount.
- All energy bill payers contribute to funding extra support measures for vulnerable households.
- Energy price increases reflect wholesale market costs and added government support measures.
- Some consumer groups suggest looking for fixed-price deals, while noting potential exit fees.
