Energy Bills Soar To Three-Year High As Price Cap To RISE 4% From October

Energy bills will rise by 4% to £1,723 for millions of households in October, sending them to a three-year high. But what can you do to beat the increase?

Households using a typical amount of gas and electricity, who pay by Direct Debit, will pay £60 more per year from 1 October 2026.

That’s because the energy price cap, set by the UK’s energy regulator Ofgem, is rising from £1,663 to £1,723 per year.

It follows a £221 increase in average energy bills when the price cap rose 13% from July this year.

The energy price cap sets the maximum amount that suppliers can charge households for each unit of gas and electricity they use.

That means the price cap doesn’t limit the size of your actual bill. What you’re charged is estimated by the amount of energy you use.

Ofgem sets the cap every three months and it applies to millions of households in England, Scotland and Wales.

Why are energy bills rising?

Energy bills are soaring due to higher wholesale gas prices triggered by ongoing conflict in the Middle East.

The upcoming increase in energy comes despite the government’s decision to remove VAT from all domestic electricity bills.

How can you save on energy bills now?

The price cap change will affect around 20 million customers on a standard variable tariff. If you’re on a fixed rate tariff, you won’t be affected.

If you’re on a standard variable tariff or your fixed rate deal is ending soon these steps can help you beat the price cap rise:

Check your tariff: if you’re on a standard variable tariff or your fixed-rate tariff is due to end before 1 July, switching onto a fixed-rate tariff can help you cut the cost of your energy.

• Pay by Direct Debit: Paying by Direct Debit is usually cheaper because you don’t have to pay admin costs. Currently, 3 million customers pay by standard credit but could save over £100 per year by switching to a Direct Debit payment.
• Shop around: price comparison can help you compare lots of energy deals quickly and find the best value. Remember to watch out for exit fees which could make your tariff more expensive if you want to switch again before the deal ends.
• Apply for support: check if you’re eligible for support from the government such as the Warm Home Discount or your energy supplier, to help you afford the cost of heating and powering your home.
• Revisit your budget: revieing your budget can help you identify other areas in your life to try and make a saving. A budgeting app can help you automate the process and get started on cutting costs.

What happens if I can’t pay my energy bills?

Try not to panic if you’re worried that you won’t be able to pay your energy bills.

Acting quickly can help you get the support you need.

Start by contacting your energy supplier as soon as possible to arrange a payment plan which you can reasonably afford. If you’re on a prepayment meter, you can request emergency credit if you’re unable to top up.

If you’re already struggling with your bills and have fallen into debt, contacting organisations such as StepChange or Citizens Advice can help you access free advice.