Energy regulator Ofgem has announced that the price cap on household gas and electricity will go up by 4% at the next planned price change in October. 

The new prices will come into effect from 1 October to 31 December, and reflect ongoing tensions in the Middle East following the US attack on Iran in February that has largely frozen gas and oil exports from the region. 

The new average annual household bill will rise from £1,663 to £1,723, says Ofgem – a £60 rise on the current quarter’s levels, but significantly below the £2,500 figure that bills reached in 2022, the regulator is keen to note. 

It’s worth noting on our part, however, that Ofgem has changed the way it calculates the average bill figure – the number is lower despite electricity prices going up, as people are using less electricity because the prices are so high. 

The £1,663 figure that Ofgem is quoting for the current quarter’s average household bill was actually calculated as £1,862 when the price rise was announced for July. If Ofgem had kept the same formula then the new price cap would be £1,936. 

Unit prices for electricity are set to increase marginally from the current 26.11p/kWh to 26.32p/kWh, though the daily standing charge for electricity will go down from 57.19p to 54.83p. 

Gas prices are set to increase from 7.33p/kWh to 7.97p/kWh and the daily standing charge will increase from 29.04p to 29.68p. 

If we take a mid-table EV with a battery size of 72kWh, the price of charging at home on the statutory rate will increase from £18.80 to £18.95.