Millions of British households face higher energy bills this autumn as the energy market regulator raised the Energy Price Cap—the maximum amount energy suppliers can charge residential customers—by more than analysts had expected.
The UK has a so-called Energy Price Cap in place, which protects households from excessively high bills by capping the price that energy utility providers can pass on to them.
Energy market regulator Ofgem on Wednesday announced that from October 1 to December 31, 2025 the price for energy for a typical household who use electricity and gas and pay by Direct Debit will go up by 2% to $2,357 (£1,755) per year.
That’s higher than the energy price for a typical household during the summer period, but down by 26.3% compared to early 2023 at the peak of the energy and cost-of-living crisis in the UK.
For a typical household, their energy bills will increase by $49.17 (£35.14) per year, according to Ofgem.
Energy prices have increased in recent months due to higher costs of transporting energy in Great Britain, as well as costs that go towards government schemes and essential support, the regulator said.
Ofgem, which changes the cap every three months largely based on the cost of energy on wholesale markets, will publish by November 25, 2025 the price cap for the first quarter of 2026.
The UK’s Labour government continues to bet big on boosting renewables despite some recent setbacks.
Ed Miliband, Secretary of State for Energy Security and Net Zero, commented on the raised energy price cap that “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,” said Miliband.
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com
