Energy bills set to go up in autumn with new Energy Price Cap

Ofgem, which sets the limit on what energy companies can charge customers, is set to confirm its latest price cap tomorrow, August 27.

The cost of an average dual-fuel energy bill is expected to rise by £17 annually, according to forecasts by Cornwall Insights.

This means most Brits will be stumping up around £1,737 a year to heat and power their home for the three months from October 1 through to December 31.

Greg Marsh, household finance expert and CEO of Nous.co, a smart money-saving assistant, is warning bills will not be affordable for a significant number of people this winter.

"Energy bills are set to increase just as winter sets in and our usage increases," he says.

"Bills are still far higher than they were before the energy crisis, and many families simply won’t be able to afford to heat their homes.

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"Debt on energy bills is at record levels and continuing to climb, with no plan in place from Ofgem or the Government to get a grip on the issue.

"With the cost of keeping our homes warms at such a high level, it’s crucial none of us pays more than we need to. But energy companies make it deliberately difficult to work out if you’re on a fair deal, and millions of us overpay as a result."

Cornwall Insights said its forecast reflected changes its assumed Ofgem would be introducing in the upcoming cap period, including the expansion of the Warm Home Discount scheme for vulnerable households that would add around £15 to a typical bill, while also providing £150 in support to 2.7 million additional people.

However it also noted that wholesale prices for electricity and gas had been “volatile”, largely reflecting geopolitical factors including uncertainty over US trade policy.