A2 Elementary · 180 words · 2 min read

Ofgem Says Energy Price Cap Will Rise 4% on 1 October

A typical British household will pay £60 more a year, and the new cap arrives with the colder weather.

The regulator Ofgem has announced that the energy price cap will rise by 4% on 1 October. A household that uses a typical amount of gas and electricity will pay £60 more a year, or £5 more a month. The new cap is £1,723 a year.

Prices are rising because wholesale gas costs more. Gas bills are going up by 8%, but electricity bills are falling slightly because the government has cut VAT on electricity.

Around 35% of households, or 11 million homes, are on fixed tariffs, so their prices will not change. But 22 million homes in England, Wales and Scotland are on tariffs affected by the price cap.

The price cap sets a maximum price for each unit of gas and electricity, not the total bill. So a family's final bill depends on how much energy they use.

Suppliers say energy debt has risen very fast. Energy UK says people now owe about £6bn in total, and it expects about £7bn by the end of the year. Suppliers have asked for more help for people who cannot pay.

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