Ofgem confirms October price cap at about £1,755 a year

Energy bills in October are set to rise again for millions of households as Ofgem confirms a higher price cap for the coming quarter. The regulator said the typical dual‑fuel bill paid by households on standard variable tariffs will increase to about 1,755 a year, up from 1,720, with the change taking effect from October 1. The increase comes despite a recent dip in wholesale prices, and is partly driven by government schemes designed to support vulnerable households, including an expanded Warm Home Discount program that will add around 15 to a typical bill and provide 150 in support to 2.7 million more people.

The price cap, which applies to roughly 21 million households across England, Scotland and Wales, sets the maximum unit rates and standing charges energy suppliers can charge for gas and electricity on standard tariffs. It does not, however, cap total bills, which depend on how much energy a household uses. The cap is reviewed every three months, in a cycle that will see another adjustment in January as weather patterns, geopolitics and policy costs continue to influence market dynamics.

Industry forecasters had previously expected a modest decline in October, reflecting...