The Mirror has updated its energy calculator to show you how much more you will pay for gas and electricity this winter after Ofgem announced its price cap will rise again
Energy prices will rise this winter by an average of nearly £3 a month, after Ofgem announced its new price cap.
The price cap changes every three months, with the latest one set to take effect from October 1 and continue through to the end of the year.
The new cap means that the typical household will pay £1,755 annually for gas and electricity, for a standard dual-fuel direct debit plan.
That’s an increase of 2%, and represents an extra £35 a year on average, or £2.93 per month.
Despite the rise, costs will be £625 (26%) lower than at the height of the energy crisis at the start of 2023 when the government implemented the energy price guarantee.
The impact of these changes will vary from household to household though, depending on how much fuel you use.
The cap does not limit household total bills – the £3 monthly rise is based on typical usage – but rather the amounts charged per unit and the daily standing charge.
You can estimate how much your bill will drop from July using our energy bills calculator.
Tim Jarvis, Director General, Markets at Ofgem, said: “While there is still more to do, we are seeing signs of a healthier market.
“ There are more people on fixed tariffs saving themselves money, switching is rising as options for consumers increase, and we’ve seen increases in customer satisfaction, alongside a reduction in complaints.
“While today’s change is below inflation, we know customers might not be feeling it in their pockets. There are things you can do though – consider a fixed tariff as this could save more than £200 against the new cap. Paying by direct debit or smart pay as you go could also save you money.
“In the longer term, we will continue to see fluctuations in our energy prices until we are insulated from volatile international gas markets.
“That’s why we continue to work with government and the sector to diversify our energy mix to reduce the reliance on markets we do not control.”
Gillian Cooper, Director of Energy at Citizens Advice, said: “Today’s announcement means the price cap will remain drastically higher than before the energy crisis.
“With millions of households already in debt as the colder months draw in, this news offers no comfort.
“The government has made welcome changes to expand the number of people who’ll receive support with their energy bills this winter, but it’s not enough to turn the tide.
“Our advisers are bracing for more calls as people struggle to top up their meters and pay the gas bill.
“It’s high time for decisions about the longer term. The government must set out plans for how it will support the households struggling the most over the coming years and also prioritise investing in energy upgrades for millions of homes, to reduce costs and keep money in people’s pockets.“