Millions of households across the United Kingdom are preparing for higher energy costs from 1 October, when Ofgem’s latest quarterly price cap increase takes effect. The regulator has confirmed that a typical dual fuel bill will climb by about £100 a year, lifting the annual average to roughly £1,755.
This rise comes at a time when household debt linked to energy is already at unprecedented levels. Ofgem has reported that more than one million households are in arrears without a repayment plan, with average debts now above £1,700. Campaigners warn that the combination of higher standing charges, global market pressures, and existing arrears could push many families into crisis as winter demand peaks.
Global pressures still driving UK bills
Although wholesale gas and electricity prices have eased from the extreme highs seen in 2022, the global energy market remains unsettled. Strong competition for liquefied natural gas (LNG) shipments in Asia, alongside continuing supply restrictions in Europe, keeps wholesale costs higher than before the energy crisis began.
Because the UK relies heavily on imported gas to balance supply, these global pressures feed directly into household bills. The price cap prevents suppliers from charging above a set limit for unit rates and standing charges, but it does not guarantee lower overall costs for consumers.
Standing charges under scrutiny
From October, households will also face higher fixed daily charges. Electricity standing charges will average £196 per year, while gas will account for about £124. These costs apply regardless of how much energy a household uses.
Critics argue that this system penalises vulnerable customers, including pensioners and those in small homes, who use less energy but still pay the same fixed fees as high-consumption households. Campaigners have called for reforms that would tie standing charges more closely to actual usage, but no changes are expected in time for this winter.
Why comparing tariffs is vital
Energy specialists stress that households should not assume the default capped tariff is the most affordable option. Running an energy price comparison can highlight whether a fixed deal or alternative supplier would deliver savings.
“Doing nothing is often the most expensive choice,” said Shay Ramani, CEO of Free Price Compare. “Families need to check their options before colder weather drives up demand. Even a short comparison can make a meaningful difference to bills over the next year.”
Dual fuel or single supplier?
Another decision households face is whether to take both gas and electricity from the same provider. While dual fuel tariffs are frequently marketed as convenient and may offer discounts, they do not always provide the lowest overall cost.
For households with relatively low gas consumption, splitting suppliers may reduce expenses. Regular tariff checks help households decide which option best matches their individual usage patterns.
Regional variations add to challenges
Despite Ofgem’s national cap, energy prices still vary across the country. Network charges differ by region, meaning bills in Scotland are often higher than those in London, even when households use the same amount of gas and electricity.
This makes it important to compare gas prices and electricity rates by postcode. Tools that factor in location ensure households are not paying more than necessary purely because of where they live.
Debt and affordability concerns
The rising cost of energy is deepening the debt burden for many households. Ofgem figures show that total customer arrears now exceed £4 billion, with the number of families owing money without any repayment plan continuing to grow. Charities have warned that unless urgent support is introduced, more households will be forced to choose between heating and other essentials this winter.
Proposals under discussion include debt relief schemes and changes to how standing charges are applied, but these measures are unlikely to take effect before October’s increase. For many families, the focus must remain on short-term actions to manage costs.
Preparing for a tough winter
With higher bills looming, energy experts recommend households take proactive steps, such as:
- Checking whether fixed tariffs offer better protection from future increases.
- Reviewing usage habits and improving efficiency through insulation or smart controls.
- Exploring government support, including the Warm Home Discount and local authority schemes.
- Running regular comparisons to keep up with market changes.
Outlook
The combination of rising bills and record levels of household debt leaves millions of UK homes exposed as winter approaches. Industry specialists say the best defence is for consumers to act now. By carrying out an energy price comparison, considering the pros and cons of dual fuel tariffs, and taking time to compare gas prices, households can reduce their costs and avoid paying more than necessary in the months ahead.
