Energy Bills Set to Rise Again as Households Face Difficult Winter

Household energy bills will rise again from 1 October, with the typical annual bill under Ofgem’s price cap increasing by 4% to £1,723 as political pressure grows over the cost of heating homes this winter.

The SNP has criticised the UK Government over rising energy costs after Energy Minister Michael Shanks called for patience over the development of Great British Energy.

The confirmed October increase will add around £60 a year to the bill of a typical household paying by direct debit if that level were maintained for a full year.

It follows a considerably larger 13% increase in July, with wholesale gas prices remaining one of the main forces pushing household costs upwards.

The October cap applies to households on standard variable tariffs, while people on fixed deals are not directly affected by the change.

Further uncertainty surrounds what households could face from January, with forecasts suggesting another substantial increase could follow if wholesale energy prices remain elevated.

The January price cap has not yet been set, with Ofgem due to announce the level covering January to March on 25 November.

The SNP highlighted a Bloomberg Economics forecast suggesting bills could rise by around 25% in January, potentially taking the annual cost for a typical household to around £2,150.

That remains a forecast rather than a confirmed increase, and the eventual cap will depend upon energy market conditions and the calculations used by Ofgem.

The political row intensified after Michael Shanks urged patience over Great British Energy, the publicly owned energy company headquartered in Aberdeen.

SNP MSP Alex Kerr described those comments as insulting to households already facing higher energy costs.

He said:

“What a total insult for UK Labour ministers to tell Scottish households to be patient while Westminster inflicts staggering energy bill hikes.

“This just shows how out of touch the Labour Party is that they are happy to stand by and let household energy bills go up by 25% in the coming months, £1000 higher than they promised.

“For people in a nation with our energy resources to be left struggling to afford their energy bills is a disgrace.

“Every rising energy bill makes the case clearer that Scotland’s energy should be in Scotland’s hands.”

The UK Government has removed VAT from domestic electricity bills between October and March, a measure which Ofgem says has prevented the October price cap from being around £45 higher.

However, higher wholesale gas prices have outweighed much of that reduction for households using both gas and electricity, with Ofgem saying gas bills are responsible for most of the latest increase.

Kerr said the SNP believed greater control of Scotland’s energy resources should rest with Scotland and linked the issue directly to the party’s case for independence.

He said:

“Energy rich Scots should never be fuel poor and that’s exactly why we need a fresh start with independence.”

For households, the immediate figure is the confirmed £1,723 typical annual bill from October, while the considerably higher numbers being discussed for January remain forecasts rather than settled prices.

The next critical date will come on 25 November, when Ofgem announces what households on default tariffs will actually face during the first three months of 2027.

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Joseph Kennedy
Joseph Kennedy
Joseph Kennedy is a senior writer and editor at The Highland Times. He covers politics, business, and community affairs across the Highlands and Islands. His reporting focuses on stories that matter to local people while placing them in a wider national and international context.
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