Ofgem has confirmed that the energy price cap will increase by 10% for the final quarter of 2024.
This adjustment means that an average household paying by direct debit for dual fuel will see their annual energy bill rise to £1,717, an increase of approximately £12 per month.
The main factors driving the price increase are rising costs in the international energy market, largely due to geopolitical tensions and extreme weather events, which have increased global competition for gas.
Ofgem has acknowledged that this rise will put additional strain on households and has committed to working with the government to explore ways to support those most in need.
In addition to the price cap announcement, Ofgem has released a paper outlining options to reduce domestic standing charges and offer consumers more choices regarding their energy tariffs.
These options include moving some fixed costs to the unit rate and reviewing the allocation of network costs.
Ofgem advises customers who are concerned about their bills to contact their energy supplier and ensure they are receiving all the support they are entitled to.
Jonathan Brearley, CEO of Ofgem, said: “We know that this rise in the price cap is going to be extremely difficult for many households.
“Anyone who is struggling to pay their bill should make sure they have access to all the benefits they are entitled to, particularly pension credit, and contact their energy company for further help and support.
“I’d also encourage people to shop around and consider fixing if there is a tariff that’s right for you – there are options available that could save you money, while also offering the security of a rate that won’t change for a fixed period.”
