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Britons face highest price cap in three years as energy bills rise 4% from October

Ofgem said the typical household will pay £60 more a year as higher wholesale gas prices and volatile markets continue to drive bills.

  • Regulator Ofgem announced on Wednesday that the energy price cap will increase by 4% starting in October, pushing typical annual household bills to £1723 across England, Scotland, and Wales.
  • Volatile international markets and conflict in the Middle East are driving higher wholesale gas prices, while ongoing heatwaves across Europe have increased gas demand for power generation and cooling.
  • Energy Secretary Miatta Fahnbulleh defended the increase, stating "Energy is an everyday essential" and citing VAT cuts on electricity bills alongside a £150 warm home discount for 6 million families.
  • Criticizing the government, SNP Westminster leader Dave Doogan stated bills have risen seven times under Labour and families now pay £563 more than the £300 reduction promised during the election.
  • Analysts at Cornwall Insight forecast the price cap could rise another 9% in January, potentially reaching £1872 annually as wholesale energy pressures persist through the winter months.
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British energy price cap to rise 4% as Iran war pushes up costs

·London, United Kingdom
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Evening Standard broke the news in London, United Kingdom on Tuesday, August 25, 2026.
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