Ofgem confirms energy price cap rise

Ofgem has confirmed a 4% increase in energy price cap for the October to December period.

Based on the energy use of a typical domestic household, from October the price cap will rise by £60 per year to £1,723 for the average household using both electricity and gas.

The regulator said the increase reflects higher wholesale gas prices as a result of the ongoing conflict in the Middle East, with volatile global gas markets remaining the dominant driver of price changes.

However, it said prices remain 52% below the height of the energy crisis in 2022 when the government stepped in to cap bills at £2,500.

Neil Kenward, Ofgem’s Director General for Markets, said: “High international gas prices are continuing to drive energy costs in the UK. We welcome the Government’s intervention to remove VAT from electricity bills, without which customers would have faced even higher costs this winter.”