On Friday (August 26), Ofgem announced that the energy price cap is rising to £3,549 a year on October 1.
This is almost double the current price cap, which sits at £1,971, and represents how much a typical household in the UK will expect to pay.
This means smaller households will pay less than the cap and larger ones will pay more, but gas and electricity bills are rising for everybody.
As per Ofgem, this reflects the “continued rise in global wholesale gas prices” which began to surge following the Covid pandemic.
Ofgem says this has been made worse by Russia switching off gas supplies to Europe and the company has urged the incoming Prime Minister to provide an urgent response.
The price cap puts a maximum per unit price on energy based on the wholesale market price and how much it costs to supply it to homes, and it’s expected to rise again in January 2023.
Many are …