Energy bills will go up by 10% in October, meaning 28.4million households will be paying about £149 more a year.
Ofgem, the energy regulator, determines how much utility companies can charge customers – the maximum suppliers can charge is known as the energy cap.
The cap, which is expressed in terms of how much the average home would pay, has risen from £1,568 to £1,717, Ofgem announced today.
Most homes won’t pay these exact amounts as the figure is based on the average energy use. Bills can very much exceed or fall well below this estimate and vary depending on energy use and location.
Though it’s called a ‘price cap’ this isn’t a cap on how much your bills will be.
Ofgem (for Office of Gas and Electrical Markets) does the maths to figure out what energy suppliers can charge people. This includes setting the price per unit of electricity and natural gas and including other charges into the bill like operating costs and subsidies for clean energy.
From October 1, the unit rate for electricity will be 24.50p per kilowatt-hour, for a standing charge of 60.99p per day – this is the fixed daily fee you pay, even if you use no electricity.
Gas, meanwhile, clocks in at 6.24kWh and now has a standing charge of 31.66p per day.
Got a story? Get in touch with our news team by emailing us at [email protected]. Or you can submit your videos and pictures here.
For more stories like this, check our news page.
Follow Metro.co.uk on Twitter and Facebook for the latest news updates. You can now also get Metro.co.uk articles sent straight to your device. Sign up for our daily push alerts here.
MORE : Shoppers ‘fuming’ over supermarket’s change to popular meal deal
MORE : The cost of living crisis really screwed us, we’re better off living apart than together
MORE : ‘Greedy’ shopper gets hate online after bagging nine yellow sticker items
Get your need-to-know
latest news, feel-good stories, analysis and more
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.