New energy price cap begins - find out how much more you will pay as bills rise

Gas and electric bills are set to increase from October
-Credit: (Image: Getty Images)


Energy bills will rise from today (Tuesday, October 1) after hitting a two-year low. The Office of Gas and Electricity Markets (Ofgem), which regulates the industry, has set a new energy price cap for October and the coming months.

The cap changes every three months and had been on a downward trend. The previous rate was the cheapest since the economy crashed and energy bills soared.

However, under the new charges, households will see their costs increase once more. The current average annual fee of £1,568 will be hiked by £149 to £1,717 for a “typical dual-fuel household paying by direct debit”, the Reach Data Unit said. Despite the increases, energy bills will still be at least 6 per cent lower than last October when the cap was set at an average of £1,834, £117 higher than this year's figure.

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The impact of the changes will vary household to household, however. Standing charges, currently 31p per day for gas and 60p per day for electricity, will increase to 32p and 61p respectively. For those paying via pre-payment meter, the new price cap level is slightly lower than for those paying by direct debit at £1,669 a year, while for those paying upon receipt of the bill, the figure stands at £1,829.

You can estimate how much your bill will increase by using our energy bills calculator below.

The higher cap comes as million of pensioners, including more than 150,000 locally, are set to lose out on their winter fuel payments. Previously anyone in England and Wales over the state pension age received between £100 and £300 towards their winter bills, but new Government rules have now restricted this to those on means-tested support like Pension Credit.