Energy bills to jump by 9.5% from October

The average household energy bill in the UK is set to increase by 9.5% from October.

Typical household energy bills will rise by around £12 a month to £1,717 a year - up from £1,568 - when the next change to the price cap takes effect.

The price cap is set every quarter by Ofgem, the UK’s energy regulator. It sets a maximum price that energy suppliers can charge households for each kilowatt hour (kWh) of energy they use.

October’s rise means this winter’s bills will be slightly less than last year’s when the price cap hit £1,834 between October and December and £1,928 from January to March. But bills are still far higher than they were before Russia went to war with Ukraine.

Craig Lowrey, consultant at energy analyst, Cornwall Insights, said: “This is not the news households want to hear when moving into the colder months.

“Following two consecutive falls in the cap, I’m sure many hoped we were on a steady path back to pre-crisis prices.

“However, the lingering impact of the energy crisis has left us with a market that’s still highly volatile and quick to react to any bad news on the supply front.

“Despite this, while we don’t expect a return to the extreme prices of recent years, it’s unlikely that bills will return to what was once considered normal.

“Without significant intervention, this may well be the new normal.”

Campaigners have also warned that the increase will force millions of households into fuel poverty this winter.

Sebrina McCullough, our director of external relations, said: “The rise in energy prices coming into winter will be a nightmare for millions of households.  Energy debt is already at record levels, with over half the people we support in arrears to their energy provider by £2,064 on average. And we’re now facing the perfect storm – price rises combined with Cost of Living payments ending, the closure of the Household Support Fund in September and winter fuel payments becoming means-tested.  

“High energy prices have pushed budgets to breaking point and the impact is devastating, especially to those who are vulnerable. 45% of our vulnerable customers have energy debt and 46% of households seeking energy debt support have children living at home.

“We’re calling for the government to work with Ofgem to introduce a framework for suppliers, so all struggling customers are referred for free debt advice and a range of repayment options are introduced including debt forgiveness in certain cases.”

“You’re not alone if you’re struggling with energy debt – there is lots of support available. Energy companies are committed to helping customers who fall behind and if your debt problem is more deep-rooted, then there is free debt support available.”

Act now to prepare your home for winter and save on energy bills

You still have time before energy bills rise to prepare your home for winter and keep your costs down. Here are some of our top tips:

Lighting

Turn off lights when they’re not needed and make sure you’re using LED lights which use 80% less energy than incandescent bulbs.

Draughts

Draught-proofing is one of the cheapest and easiest ways to save energy and money. Draughts happen where there are unwanted gaps such as round windows, doors, skirting boards, fireplaces and letter boxes. Invest in heavy, lined curtains, seal cracks with caulk, or pick up insulation strips for around £6 on Amazon. Cover keyholes and letterboxes with tape to stop cold air from getting into your home. You’ll probably want to use your fire to heat your home so don’t block it up but consider using a fire basket or grate to elevate your firewood, allowing oxygen to reach the fire from all sides, which will make your fire burn hotter for longer.

Appliances

Remove dust and lint from appliances to keep them efficient and prolong their lifespan. Unplug devices when they're not in use or switch off the power switch at the socket or wall. Turn devices to ‘energy-saving’ or ‘eco’ mode when possible. Run your washing machine on a 30-degree cycle, and only run the dishwasher when it's full. Use tumble dryers sparingly. 

Heating

Set your heating to come on just before you get up and switch off after you've gone to bed. Check your radiator controls and reduce your boiler flow temperature. Lowering it by just two degrees can save up to 5% on your heating bill. You can also insulate your hot water cylinder and use hot water bottles to cut costs.

Fix your tariff

By opting for a fixed rate tariff, you’re locking in the amount you pay per unit of energy for a set period, usually 12 months. Fixed tariffs aren’t affected by price cap fluctuations, so you won’t save or bills won’t increase when it changes. Fixing won’t necessarily save you money but it will give you security around what your bills will be for the next 12 months. Make sure you compare several different energy providers if you decide to fix, so you get the cheapest and best deal for you.

See if you’re entitled to support

You might be able to get help if you’re struggling to afford energy bills. There is lots of different support available but what you’ll be offered will depend on your circumstances. You may be able to get fuel vouchers, a grant to help clear energy debt, help with bills or to make your home more energy efficient. You might even be entitled to a warm home discount worth £150. Certain energy providers could write off your debt, offer you a payment holiday, or work with you to come up with an affordable repayment plan. Contact your energy supplier and your local council to find out what support is available to you.

Join the priority services register

The priority services register (PSR) is a free scheme run by energy suppliers and network operators to provide extra support to people who might be at risk if their energy is cut off, such as pensioners, those coping with long-term health conditions/disabilities or those whose circumstances have recently changed. Being on it means you might get help with meter readings, there may be more flexibility in the way you receive bills or emergency support and you could get advance warning about planned power cuts.