Ofgem confirms 2pc energy price cap rise from October
By Iain Gilbert
Date: Wednesday 27 Aug 2025
(Sharecast News) - Millions of Britons will face higher energy bills this autumn after Ofgem confirmed a 2% increase in its quarterly price cap, slightly above market expectations.
From 1 October, the annual cost for a typical dual-fuel household will rise to £1,755, up £35 from the current level. The increase applies across England, Scotland and Wales, and will remain in place for three months, when Ofgem will adjust the cap again, primarily in response to wholesale market movements.
Households on means-tested benefits will automatically receive the £150 Warm Home Discount this winter, with eligibility widened to remove previous restrictions linked to property size.
Standing charges will rise by 4% for electricity and 14% for gas, adding further pressure to budgets already stretched by elevated energy costs, with campaigners already warning that price cap adjustment could lead to another winter of financial strain for vulnerable households.
Ofgem said the changes were necessary to balance affordability with supplier sustainability, and urged consumers to check for cheaper fixed-rate deals where available. The regulator also reminded consumers that the cap was not a limit on total spend, noting that for every £100 currently spent on energy each year, households can now expect to pay roughly £2 more under the new rates.
Reporting by Iain Gilbert at Sharecast.com
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