What will the Ofgem energy cap changes mean for UK household bills?

Following Ofgem's announcement of a 4% rise in the energy price cap from October, millions of UK households are asking what the change means for their bills. Here is what you need to know.

What is the energy price cap?

The energy price cap sets the maximum rate per unit of gas and electricity that suppliers can charge customers on standard variable tariffs. It does not limit total bills, so those who use more energy will pay more.

How much more will I pay?

A typical household using average amounts of energy will pay around £60 more per year, or about £5 per month extra, compared to the current period's rates.

Can I avoid the increase?

Customers on fixed-rate tariffs will not be affected immediately. Switching to a fixed deal before October could protect against the higher cap rate, though consumers should compare deals carefully.