London: Energy bills in the United Kingdom are expected to increase more than initially forecast as households prepare for the upcoming winter season. The energy regulator Ofgem has announced a 2% rise in the energy price cap, effective from October 1, 2025, raising the average annual energy bill by £35 to £1,755. This increase is higher than earlier projections, which had predicted a 1% rise.

The price cap, introduced in 2019, limits the maximum amount suppliers can charge households on standard variable tariffs. Around nine million households across England, Scotland, and Wales who are on these default tariffs will be affected, while households on fixed-rate plans will not see any change.

The latest increase marks the fourth consecutive rise in the energy price cap, driven by elevated European gas prices and policy costs, including nuclear project funding. Despite a modest 7% drop in wholesale prices over the summer, ongoing volatility in global energy markets continues to pressure household energy costs.

Consumer advocacy groups have expressed concern that this rise will intensify financial pressures, particularly for low-income households. The charity National Energy Action noted that many households still pay around £600 more annually compared to pre-2022 levels, and household energy debt reached a record £4.15 billion last winter.

In response, Ofgem advises consumers to explore switching to fixed-rate tariffs or alternative payment methods such as direct debit or smart pay-as-you-go meters to manage costs. The government has also expanded the Warm Home Discount Scheme to include 2.7 million additional households, providing £150 off energy bills for eligible low-income families.

Energy analysts suggest that prices may ease in early 2026 if wholesale costs decline, but they warn that volatility is likely to continue, and households should remain proactive in managing energy consumption and seeking cost-saving strategies.

Global energy trends are expected to continue influencing local prices, highlighting the importance of energy efficiency and careful monitoring of international market developments.