Ofgem Price Cap Soars By 80% to £3,549 in October – And Will Be ‘Significantly Worse’ Next Year

Households in Lytham St. Anne’s are among the 24 million nationally facing massive hikes in energy bills on 1 October, following the announcement today (26th August) by energy regulator Ofgem that the cap on variable or default energy tariffs is climbing by 80%. The new cap will only remain in place until 31st December, when according to experts it soar once again.

A household with ‘typical use’ paying for a dual fuel variable tariff by direct debit will, from 1st October,  see annual bills increase by £1,578 – from the £1,971 set in April 2022 to the new cap of £3,549.

For people paying by prepayment meter, the cap is increasing by 79%, which means a ‘typical’ energy user would pay £3,608 per year, up from £2,017.

Unfortunately, there are unlikely to be any fixed deals cheaper than what you are currently paying

Ofgem has also warned today that energy prices could get ‘significantly worse’ next year. The regulator said that some suppliers might start increasing the amount that direct debit customers pay before October 1, to spread out payments, but any money taken by suppliers will only ever be spent on supplying energy to households.

Experts at consultancy Auxilione, using latest gas prices, predict that 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 slightly, by 11 per cent to £6,485 in July and by another 7 per cent to £6,006 in October.

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