Ofgem has confirmed that the energy price cap will increase by 10% in October, bringing the annual cost for a typical dual fuel household to £1,717.
The rise is attributed to a recent spike in wholesale energy prices, driven by the UK’s dependence on imported gas and the volatility of the international energy market.
Looking ahead, analysts from Cornwall Insight have projected another increase in the price cap for January 2025, estimating a 3% rise to £1,762.
These forecasts have heightened calls for government intervention to protect vulnerable households, with some advocating for the introduction of social tariffs during the winter months.
The ongoing increases are also fueling debate over the future of the price cap itself.
Critics argue that it may be hindering competition in the energy market, while Ofgem is currently reviewing the cap as part of a broader assessment of consumer protection measures.
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