Ofgem announces 4% increase to energy price cap from October
Energy regulator Ofgem has announced a 4% increase to the energy price cap from 1 October 2026, meaning the typical household energy bill will rise by around £60 per year, protecting around 22 million households on default tariffs.
Ofgem has said the increase has been driven mostly by higher wholesale gas prices linked to ongoing instability in international energy markets. However, this price is 52% lower than the height of the energy crisis in 2022, when the government set the cap at £2,500.
They also noted that the government’s removal of VAT from domestic electricity bills has helped to limit the impact on consumers, with most of the increase being down to rising gas costs. Households that do not use gas are expected to see only a minimal rise in bills of less than 1%.
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