UK Energy Bills to Rise 4% from October, Averaging £1,723 Annually
UKPulse News Desk
UK households will see a 4% increase in energy bills from October, bringing the average annual cost to £1,723, the highest in three years. This rise is primarily driven by higher wholesale gas prices.
- Average annual energy bills will increase by £60, or £5 a month, from October.
- The increase is largely due to higher wholesale gas prices, with gas bills rising by 8%.
- Households not using gas will experience a smaller increase of less than 1%.
UK households are facing a 4% rise in energy bills from October, pushing the average annual cost to £1,723. This marks the highest level in three years, following a 13% increase in July.
Ofgem, the regulator, stated that higher wholesale gas prices, linked to the ongoing conflict in the Middle East, are the dominant factor behind the price changes. Gas bills are set to increase by 8%, while electricity bills are expected to remain broadly stable due to a VAT reduction.
Approximately 11 million households (35%) on a fixed tariff will not be affected by this increase. Energy Secretary Miatta Fahnbulleh acknowledged public concerns, stating the government is working to make bills more affordable, citing the removal of VAT from electricity bills and a £150 reduction in April's budget.
Despite the increase, prices remain 52% below the peak of the 2022 energy crisis, when the government capped bills at £2,500.
Why this matters: The increase in energy bills will impact household budgets across the UK, particularly those reliant on gas, and comes amid calls for further government support for vulnerable households.
What this means for you: Your average annual energy bill will increase by £60, or £5 a month, from October. If your household uses gas, your gas bill will rise by 8%, while electricity bills will remain broadly stable. If you are on a fixed tariff, you will not be affected by this increase.