Energy price calculator – see how much extra you’ll pay from October | Personal Finance | Finance
Gas and electricity prices will rise by 2% for millions of households in autumn when the new price cap takes effect, energy regulator Ofgem has announced.
From October 1, a typical household in England, Scotland and Wales will see energy bills increase by around £2.93 a month, leaving a home on a default tariff paying £102 for what currently costs £100 per month. Latest figures show more than a third of customers (37%) are now on fixed tariffs, which means they are protected from the upcoming rise. Tim Jarvis, director general of markets at Ofgem, told BBC Radio 4’s Today programme: “We have seen prices come down by around 60% since the height of the crisis, and that’s even taking into account the level of Government support that was made available at that time to deal with the increase in prices.
“But we are entering a period where we’re looking to try and stabilise the bill that is largely going to be about getting off international gas prices. It is that volatility that is making prices very difficult to predict, and we’re seeing big spikes and big reductions over time.”
Ofgem changes the price cap for households every three months, largely based on the cost of energy on wholesale markets.
The cap sets a maximum price that energy suppliers can charge consumers in England, Scotland and Wales for each kilowatt hour (kWh) of energy they use. The cap does not limit total bills, because householders still pay for the amount of energy they consume.
You can estimate how much your bill will increase in October using our energy bills calculator below.
Ofgem says shopping around for a fixed tariff could save consumers more than £200 compared to the upcoming price cap level.
Changing payment methods from standard credit to Direct Debit can also help reduce costs. Currently, eight million customers pay by standard credit, but they could make savings of £135.60 with one simple switch.
Ofgem has also introduced rules to ensure anyone struggling with their bills gets the help they need from their supplier. That could include tailored repayment plans, which can help households regain control and avoid falling further behind, or providing emergency credit to reduce the risk of self-disconnection.
Fuel poverty charity National Energy Action has warned that the rise will harm people already in “desperate circumstances”.
Energy adviser Michael Penhaligon said: “Every day my colleagues and I speak to people in desperate circumstances. They can’t afford the very basics of heat and power. They are rationing their energy usage and they’re cutting back
on food and other essentials. The individuals I speak to are left to rely on foodbanks, fuel vouchers and other charitable grants to help restore them to a basic standard of living. This shouldn’t be happening in the UK in 2025.
“Some may say that the cap rising around £35 won’t have an impact, but the people I speak to already can’t afford their bills, and many of them are deep in debt. This can have a huge impact on their mental and physical well-being. A rise in bills just as temperatures start to drop will put even more pressure on households.
“My colleagues and I achieve amazing outcomes for households to help them afford their energy; we get debt written off, we get them access to benefits they are entitled to, and we liaise with their suppliers on their behalf. But the scale and depth of fuel poverty is far beyond the remit of any charity.”
