Ofgem has announced that the average household’s energy bill will rise by 2.03% to £1,755 a year from 1 October 2025.
This represents a 2.21% year on year rise and means average energy bills will be 68.43% (£713) a year higher than in winter 2020/21.
A spokesperson for the End Fuel Poverty Coalition, commented:
“Among the hardest hit by the planned price cap rise will be the 12 million households already in fuel poverty.
“It means that average energy bills will remain painfully high and hundreds of pounds a year more than in winter 2020/21.
“In the detail of the announcement is a 14% increase in gas standing charges, while gas unit rates remain almost double pre-crisis levels. And the cost of electricity is also up, which is itself set by the cost of the most expensive generator, usually gas-fired power stations.
“Given that wind and solar are far cheaper ways of generating power and North Sea gas reserves are unable to meet domestic heating needs from 2027, it’s time for action.
“We need urgent reforms to fix the broken pricing system, steps to ensure households benefit from targeted support for cold homes, a nationwide insulation and ventilation drive, reform of energy trading rules and lower standing charges.
“Meanwhile, expansion of renewables and upgrading the grid must be funded through investment or by tackling excess network and energy industry profits, not by loading more costs onto struggling households.”