Ofgem has announced a 4% increase in the energy price cap, raising typical annual bills by £60 to £1,723 starting in October. This change affects millions of households across England, Scotland, and Wales, primarily due to rising wholesale gas costs linked to geopolitical tensions in the Middle East.
The price cap, which regulates charges for standard variable tariffs, will see gas bills rise by 8%. However, households on fixed tariffs will not be impacted by this increase. The next review of the energy price cap is scheduled for January 2024, with analysts predicting potential further increases.