Business & Finance
Winter energy prices in Great Britain expected to reach three-year high
Regulator Ofgem is anticipated to raise the price cap by 4% in October, driven by rising wholesale gas costs.
The short version
- Energy industry regulator Ofgem is expected to announce a 4% increase to the domestic price cap, raising typical annual energy bills to £1,729 starting in October.
- The price hike, driven by higher international wholesale gas costs, will affect roughly 33 million households on variable tariffs in England, Scotland, and Wales.
- Around 40% of households on fixed energy tariffs will be shielded from the immediate price increase until their current terms expire.
Key facts
- Consultancy Cornwall Insight forecasts that a household using a typical amount of energy paid via direct debit will see annual bills rise from £1,663 to £1,729 starting in October.[BBC News]
- Average international wholesale gas prices over the past three months were 61% higher than in late 2025, according to trade body Energy UK.[BBC News]
- Energy UK estimates cumulative household energy debt has reached £6 billion and could rise to approximately £7 billion by the end of the year.[BBC News]
- A government reduction of VAT on electricity bills taking effect in October is expected to lower a typical annual bill by roughly £50.[BBC News]
What remains uncertain
- The exact level of the upcoming price cap depends on Ofgem's formal announcement.[BBC News]
Sources
- Winter energy prices expected to rise to three-year highBBC News - Business