London — Households across England, Wales, and Scotland will see their annual energy bills increase by £149 starting in October, according to the latest price cap set by energy regulator Ofgem. The new cap means households using an average amount of gas and electricity will pay £1,717 per year, marking a 10% rise from current levels.

This price cap affects 27 million homes and determines the price for each unit of gas and electricity used. Although energy prices are still lower than they were last winter, this increase comes amid the withdrawal of some support schemes for energy bills. Additionally, the new government has announced a halt to winter fuel payments for 10 million pensioners in England and Wales.

The increase follows two price reductions earlier this year, in April and July. However, with prices set to rise by approximately £12 a month for a typical user in the run-up to winter, households are advised to anticipate a 10% increase in their current annual bills.

Ofgem attributes the rise in the price cap to higher prices on the international energy market, driven by increasing geopolitical tensions and extreme weather, which have heightened competition and demand for gas, a key determinant of wholesale electricity prices.

Despite the current increase, energy bills will still be about £117 cheaper annually for a typical household compared to October of last year. However, analysts warn that another price rise is likely in January. In addition to the overall price hike, standing charges for gas and electricity will each increase by one penny per day. Ofgem is currently considering reforms to the standing charge system in response to ongoing concerns from billpayers.