Households in the UK are bracing themselves for increased energy costs this winter as Ofgem raised the price cap from £1,568 to £1,717 for a typical household, effective from October 1. The energy price cap sets the maximum price that energy suppliers can charge consumers for each kilowatt hour of energy used. This increase is a result of rising wholesale prices in the international energy market, driven by geopolitical tensions and extreme weather events.
Jonathan Brearley, Ofgem’s chief executive, highlighted that the surge in international gas prices directly impacts domestic energy bills and urged consumers to explore better deals to potentially save money. Martin Lewis, founder of MoneySavingExpert.com, stressed the importance of switching energy suppliers and considering fixed-price energy tariffs to mitigate the impact of the price rise.
To help consumers navigate these price hikes, Emily Seymour from Which? advised comparing fixed and variable energy deals based on individual circumstances. Ofgem also encouraged eligible households to make use of state benefits, such as the winter fuel payment for pension credit recipients.
Richard Lane from debt charity StepChange expressed concern that the price cap increase could deepen the financial struggles of vulnerable households and called for targeted support from the government. With energy costs on the rise, it is crucial for consumers to explore their options, seek assistance if needed, and consider energy-efficient practices to manage bills effectively.
As winter approaches, experts emphasize the importance of staying informed, checking eligibility for support schemes, and engaging with energy suppliers to find solutions that suit individual needs. By taking proactive steps and utilising available resources, households can navigate the challenges posed by escalating energy costs in the coming months.