Stories

Tue, 25 Aug 2026

Tue, 25 Aug 2026 Winter energy prices expected to rise to three-year high

Millions of households will be affected by an increase in the energy price cap by regulator Ofgem.

* Energy bills for millions of households will rise by 4% under a new price cap to be announced by Ofgem on Wednesday.
* The increase, which affects variable tariffs in England, Scotland and Wales, is due to rising wholesale gas prices.
* The average annual bill is expected to rise to £1,729 from October, the highest level for three years.
* Around 40% of households have fixed energy tariffs, which will not be affected by the price cap increase.
* Energy debt has jumped, with total debt estimated at around £6bn and an average debt of £3,500 per household without a payment plan.
* Suppliers are calling for more support for struggling households, including a flexible discounted tariff and debt write-off scheme.
* The government is cutting VAT from electricity bills in October, which should reduce the typical annual bill by around £50.