What is the new energy price cap in the UK? Why are gas and electric bills increasing? [Video]

The energy price cap, which regulates the amount that 24million UK households pay for gas and electricity, will jump by 80 per cent from October – sending the average household’s yearly bill from £1,971 to £3,549.

The cap affects those in England, Scotland and Wales on default energy tariffs, and the new level announced by regulator Ofgem this morning will remain in place until December 31, when it will be adjusted again.

Research by Uswitch found monthly bills in October, November and December this year will hit around £243 for low usage, £363 for medium usage and £513 for high usage – also depending on the size of the home. 

Experts at consultancy Auxilione used latest gas prices to predict the cap will rise by another 52 per cent to £5,405 in January 2023, then by a further 34 per cent to £7,263 in April – before falling, to £6,485 in …