Typical household energy bill up £149 a year in October

A typical household’s annual energy bill will rise by £149 in October under the new price cap.

People using an average amount of gas and electricity will pay £1,717 a year, a 10% rise compared with now.

The cap, set by the energy regulator Ofgem, affects the price paid for each unit of gas and electricity used in 27 million homes in England, Wales and Scotland.

Although prices are still lower than last winter, the rise in bills comes as some support for bills has been withdrawn, and the new government has announced it will halt winter fuel payments for 10 million pensioners in England and Wales.

Energy prices have fallen twice this year – in April and July – but will head back up in the run-up to winter, by about £12 a month for a typical user.

To calculate the effect on what households will pay this autumn, billpayers can add 10% to their current annual bill.

The rise in the price cap is the result of higher prices on the international energy market, Ofgem said, owing to increasing geopolitical tensions and extreme weather driving competition and demand for gas, which determines the price of wholesale electricity.

Bills will remain about £117 a year cheaper for a typical household than in October last year, but analysts say another rise in prices is likely in January.

Standing charges are rising by one penny a day for gas and also for electricity, but the regulator is considering reforming the system.

How your bill will change in October
In specific terms:

• Gas prices will be capped at 6.24p per kilowatt hour (kWh), and electricity at 24.5p per kWh – up from 5.48p and 22.36p respectively now. A typical household uses 2,700 kWh of electricity a year, and 11,500 kWh of gas
• Households on prepayment meters will pay slightly less than those on direct debit, with a typical bill of £1,669
• Those who pay their bills every three months by cash or cheque will pay more, with a typical bill of £1,829
• Standing charges – a fixed daily charge covering the costs of connecting to a supply – will go up to 61p a day for electricity and 32p a day for gas, compared with 60p and 31p respectively now, although they vary by region