What is the energy price cap and how much are gas and electricity bills going up?

Published On Aug 6, 2021, 2:15 AM

Starting October 1, gas and electricity prices in England, Scotland, and Wales will increase by 10%, raising the average annual dual-fuel bill to £1,717. The hike comes as winter fuel payments will no longer be available for about 10 million pensioners, and assistance measures from the previous winter have concluded. The Energy Price Cap, affecting 28 million households, will set new unit charges at 6.24p/kWh for gas and 24.50p/kWh for electricity. Experts recommend customers consider switching to fixed tariffs amid rising prices, although fixed deals carry risks if prices decrease. Prepayment meter customers will see slightly lower bills. Ofgem is exploring changes to standing charges, which disproportionately affect low-energy users, while the government has made adjustments to winter fuel payments only to low-income pensioners.