Experts warn that energy bills will rise by 9% in October, just when households need to turn on the heating

Energy bills are set to rise by 9 per cent in October, experts warn, just when households need to turn on their central heating.

The average household now pays energy bills of £1,568 a year, under a deal capped by Ofgem’s price cap.

But this figure could rise by 9 per cent – or £146 – to £1,714 a year by October.according to experts at Cornwall Insight.

Cornwall Insight has a good track record of predicting price cap changes. Ofgem will officially announce the October price cap changes on Friday 23 August.

An increase would be a blow to households that may need to use more energy to heat their homes as the weather gets colder.

It is a particular blow for millions of pensioners who will no longer receive Winter Fuel Payments worth up to £300 a year due to radical cuts by Chancellor Rachel Reeves.

Energy bills are rising due to the increasing cost of wholesale energy – the gas and electricity that energy companies buy and then sell to consumers.

A spokesman for Cornwall Insight said: “There was a fall in wholesale prices at the start of the year. Since then they have slowly risen again and were up by around 20 per cent in August.”

“It’s an incredibly volatile market that never fully recovered from the energy crisis, nor from Russia and Ukraine. It’s very sensitive to anything that disrupts supply.”

Simon Francis, coordinator of the Ending Fuel Poverty Coalition, said: ‘It’s another tough week for households who will realise just how bad their energy bills will be this winter.

‘The reality is that bills will go up compared to today and will be around 65 percent higher than before the energy bill crisis began.

“But instead of offering help, the Government has cut winter fuel payments for millions of people and is refusing to confirm whether the Household Support Fund will be extended.”

Will my energy bill increase by 9%?

Not necessarily.

The 9 percent increase is an average and the change in your bill will depend on how much energy you use.

Furthermore, the change only applies to households with energy bills regulated by Ofgem’s price cap.

Energy regulator Ofgem’s price cap limits the price that can be charged to households on variable-rate gas and electricity contracts.

Ofgem limits unit rates (the price you pay for the energy you use) and fixed charges (daily rates you pay regardless of the amount of energy you use).

Ofgem’s price cap is set four times a year.

What’s next with energy bills?

Unfortunately, it seems the only way up.

Cornwall Insight said there will be a “modest further increase” in energy bills when the price cap changes again in January 2025.