Households will find out this week how much their energy bills will rise to in autumn and winter.
Ofgem is due to release its energy cap level for standard tariffs from October to December 2022. The latest forecasts suggest bills will rise from £1,971 per year for typical use up to more than £3,500. That's an increase of 82%, with another increase to £4,650 a year from January according to insiders.
If correct, between October and April – which includes the coldest months of the year – the average household will pay an equivalent £4,102 per year for their gas and electricity. No immediate extra help will be announced by Boris Johnson’s Government, with major financial decisions being postponed until either Liz Truss or Rishi Sunak is in No 10 following the Tory leadership contest.
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Mr Sunak has pledged to remove VAT from energy bills, while Ms Truss has promised to cut green levies. Ofgem has confirmed when we will find out the final energy cap for October to December 2022.
When October 2022 energy cap will be announced
Brits will find out how much energy bills will increase by, based on standard use, on Friday August 26, 2022. Ofgem says that cap will apply to energy used in October, November and December. The cap will be changed - and likely raised - again in January.
When will the January 2023 energy cap be announced?
Ofgem will announce the January to March 2023 energy cap level in November 2022. Forecasts predict an increase to the equivalent of £4,650 per year. The next energy cap will then follow in April 2023, then July 2023.
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