Energy Price Cap warning as price set to increase in October

Experts are warning that the Energy Price Cap could rise again in October, by around 3% <i>(Image: Getty Images/iStockphoto)</i>
Experts are warning that the Energy Price Cap could rise again in October, by around 3% (Image: Getty Images/iStockphoto)
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Experts are warning that the Energy Price Cap could rise again in October, by around 3%.

This follows a similar rise in April, and a cut to come in July, but will still come as a blow to customers, who face increasing bill prices and rising food costs.

Martin Lewis says: "The latest predictions from Eon, British Gas & EDF have just come out. All are up on a week ago when it was predicted Oct would stay roughly the same as now (we're now 1/3 of the way through the Oct Cap assessment period).

"Much of this is on the back of the rise in energy wholesale prices due to the conflict in the Middle East. Current predictions range - Up 1.6%-2.8% Oct - Up c.1% on top of that in Jan - Up c.3% on top of that next April Though the further out you go the more crystal ball gazing it is."

What is the energy price cap?

The term is quite confusing and it's important to note it's not the maximum price you will pay - it's an average. If you use more, you will pay more.

The cap was introduced on January 1 2019 by regulator Ofgem, with the aim of preventing the millions of households on expensive variable tariffs from being ripped off.

But it only limits what you pay for each unit of gas and electricity that you use.

It's based roughly on wholesale energy prices (those that firms pay) and applies only to providers' standard and default tariffs, which the vast majority of households are now on.


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Warm Home Discount 

There is some better news for those on very low incomes this winter, with an expansion of the £150 Warm Home Discount to 2.7m more low income households winter 2025/26.

Martin Lewis added: "It’ll be done by getting rid of the ‘high energy cost’ criteria for those on means tested benefits like Universal Credit (which helps working people and non working on low incomes).

"That’s good as it’s a terribly implemented system which left many, literally, unfairly out in the cold."

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