Energy bills for most households on default tariffs in Great Britain are set to increase from October 1, with the typical annual energy bill rising by approximately £60, from £1,663 to £1,723. This adjustment follows a period of increased gas prices, largely attributed to the ongoing international conflict in the Middle East, which has created significant volatility in wholesale gas markets.
Energy UK highlighted that gas prices are a primary driver of the price cap increase for the three months starting October 1. Gas is used for around a quarter of Great Britain's electricity generation, sometimes reaching as much as 60%.
Households on electricity-only tariffs will experience a much smaller increase of £6 for the year. This is partly due to Prime Minister Andy Burnham's announcement to remove VAT from electricity bills between October 1 and March 31, 2027, a measure intended to provide some relief this winter.
Ned Hammond, Deputy Director of Policy (Customers) at Energy UK, stated that the increase comes at a difficult time for customers, noting that energy debt has reached £6 billion as the price cap reaches its highest level in three years. Energy UK has called for a targeted social discount scheme and advises anyone struggling with bills to contact their supplier for support.