Millions of households in Great Britain face higher energy costs this autumn as the price cap on dual-fuel bills increases by 2%, raising the typical annual bill to £1,755. The change, effective from October, means an average household will pay around £35 more each year.
The rise comes partly due to an expansion of the government’s warm home discount scheme, which will add about £15 to bills while providing 2.7 million more households with a £150 rebate. Around 9 million households on variable tariffs will see the immediate impact of the new cap, though total bills will still depend on actual energy usage.
Under the revised cap, electricity unit costs will rise from 25.73p to 26.35p per kWh, while gas prices will slightly fall from 6.33p to 6.29p per kWh. Standing charges will increase further to support maintenance of energy networks — electricity rising to 53.68p per day and gas to 34.03p per day.
The return to rising bills follows a short summer reprieve when prices dropped 7%. Households are still paying about £600 more annually compared to pre-2022 levels, before Russia’s invasion of Ukraine drove gas prices higher. Debt levels remain a concern, with household energy arrears hitting a record £4.15bn last winter. Analysts expect a modest fall in the cap in January, depending on global energy trends and policy costs.