THE average household energy bill is set to increase by more than £100 in October after Ofgem announced it was increasing its price cap.
It has risen from £1568 per year to £1717, an increase of 10%.
The energy regulator said rising prices in the international energy market, due to heightened political tensions and extreme weather events, was the main driver behind the decision.
But how does the energy price cap work?
The price cap sets a limit that energy suppliers can charge consumers for each kilowatt hour (kWh) of energy they use.
It means it does not limit a household’s total bills, because people still pay for the total amount of energy that they consume.
The figures provided are calculated for an average-use household, and if more energy than average is used, a household will pay above the cap.
You don’t have to do anything to put the price cap in place – this is done by your energy supplier.
The next review of the price cap will be published by November 25.
It will cover the period January 1 to March 31 next year.
To find out more information, click here.
