MSE News: Energy bills to rise 2% in October as new Price Cap is announced

MSE_Helen_K

The price most households pay for gas and electricity will rise by 2% on average from 1 October 2025 as energy regulator Ofgem has announced the latest Energy Price Cap rates. But you can act now to save 15% – here's how.

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'Energy bills to rise 2% in October as new Price Cap is announced – act now to save 15%'

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wrf12345

Luckily I am fixed far enough ahead to avoid the absurd s/c increases, hopefully being able to switch to the new zero s/c tariffs early next year. 

FrugaiMacDugal

If able to get a zero s/c, unit prices will no doubt go up.

molerat

Looks like the softy southerners are getting looked after again.  N Scotland cap is +3% on an already higher price.

Bald_Funster

Having seen the article about the price cap rise I used your cheap energy club comparison to see what I could save.  I am currently on EDF Simply Tracker Extra Apr 26, which the cheap energy club stated that I pay a unit rate of 24.85 per KWh and a standing charge of 50.4p per day.  However, this is not correct as the unit rate is 26.32p per KWk and a standing charge of 35.68p per day.  This means that the cheap energy club isn't giving me a true comparison, why is there a difference?

Vitor

I've told my Nan to turn down the thermostat by another 1 degree to economise. It's now set to 4°C, thanks to years of economising. 

Scot_39

So even CI underestimated the rise - again.

And look at the breakdown, 

https://www.ofgem.gov.uk/sites/default/files/2025-08/summary-of-changes-to-energy-price-cap-1-october-to-31-december-2025.pdf


Despite wholesale costs dropping £15
(Despite gas increases £5 to cover new allowances for unbilled usage) 

Network charges up £24, 6% 3x target inflation, due primarily (Ofgems word not mine) to electricity balancing costs = more bad news for our bills from EMs accelerating renewables plans.  An extra £2pm.

Policy charges up another £17 = 9% 4.5x inflation target due mainly to WHD extension - govt imposed policy cost - being funded fully in advance of next winters payment.
2.5 yrs ago that figure was £158 its now £215 - £57 ex VAT,  c£60 inc vat - An extra £5 per month on our bills. 
£215+vat = c£226 pa total = c £19pm at median tdcv

WHD - and remember thats only the extension to 2.7m more, not the full 6.1m total who will now recieve it - a clear example of a benefits shortfall to meet todays still far higher energy bills and the insidious drift from our supposedly progressive general taxation to energy bill taxation for the recovery to help if not fully pay for it.

Its time people woke up to these govt imposed charges we are all being punished by. 

Forget arguments about rebalancing the costs betwen SC and unit rates - and concentrate on the real drivers of our rising energy bills.

Govt social policy costs and for electricity - unreliable renewables - in remote locations - adding balancing costs and physical networking costs.
And that £24 extra for renewables is ONLY the now - just wait until grid thermal hits forecast £3bn by 2030, and balancing costs hit tge forecast £8bn total.

Vitor

Due to vested interests, red-tape and clueless politicians the 'plug in' or 'balcony' solar panels that are very popular in Germany, France etc. remain banned in Britain. An 800W system has a payback in 3 years, saving £200 to £300 off bills each year. There's plan to 'look at' these, apparantly...

jintyb

After all the press today I went on to BG and chose a cheaper tariff which was going to save me £45 a year. It then generated a bill based on estimated readings ( I have a smart meter) and increased my DD by £20 per month. I am currently £169 in credit. I wish I’d left well alone! After phoning they put my direct debit back to the previous amount but told me my smart meter wasn’t transmitting the readings. I feel like withdrawing my credit balance but I’m a bit scared to, any advice? 

Qyburn

Vitor said:

Due to vested interests, red-tape and clueless politicians the 'plug in' or 'balcony' solar panels that are very popular in Germany, France etc. remain banned in Britain. An 800W system has a payback in 3 years, saving £200 to £300 off bills each year. There's plan to 'look at' these, apparantly...

They're not "banned", they just have to comply with the wiring regulations.

Vitor

- they just have to comply with the wiring regulations.- 

Exactly my point, red-tape and foot-dragging by the industry means 'plug in' systems are banned in the UK