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UK Energy Bills To Rise By 80% In October As Regulator Hikes Price Cap

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UK Energy Bills To Rise By 80% In October As Regulator Hikes Price Cap

Energy bills in the United Kingdom (UK) will jump 80 percent to an average of £3,549 a year in October — up from £1,971 a year.

The Office of Gas and Electricity Markets (Ofgem), Britain’s energy regulator, announced the increase in the energy price cap on Friday.

The regulator’s move comes amid soaring global gas prices propelled by Russia’s war in Ukraine and reduced reliance on Russia’s gas supply.

Speaking on the increase, Jonathan Brearley, Ofgem’s chief executive officer (CEO), said the regulator has done everything to control the price.

UK Energy Bills To Rise By 80% In October As Regulator Hikes Price Cap

Brearley said the rise would have a “massive impact” on households across Britain, and another increase was likely in January, reflecting significant pricing pressure in energy markets.

He advised the government to deliver further help to households.

“The government support package is delivering help right now, but it’s clear the new Prime Minister will need to act further to tackle the impact of the price rises that are coming in October and next year,” he said.

“We are working with ministers, consumer groups and industry on a set of options for the incoming prime minister that will require urgent action.”

The price cap limits the standard charge energy suppliers can bill domestic customers for their combined electricity and gas bills in England, Scotland and Wales.

In Northern Ireland, suppliers can increase prices at any point after getting approval from a different regulator.