"We won't put the heating on" people in West Midlands respond to energy price cap rising 10% today
Ofgem’s new energy price cap for October to December comes into effect making average bill £149 more
An average household energy bill rises by £149 today as the new energy price cap comes into effect.
Ofgem has increased the price cap by 10%, meaning the current £1,568 annual bill for a typical dual fuel household in England, Scotland and Wales rises to £1,717.
The latest cap is just 6% or £117 lower than it was compared to the same period last year.
"It's ridiculous that I've got to pay so much to keep my baby warm."
Some people in the West Midlands are worried about the rise in bills.
"We won't put the heating on, we'll just have to wear more clothes," said one couple from Birmingham.
A mother said: "With a baby, we have the heating on a lot more. It's ridiculous that I've got to pay so much to keep my baby warm."
Simon Lellow runs the Telford Crisis Support which offers aid to those that might be struggling to pay their bills in the form of food and clothes.
He said, with a rise in energy bills, there will be more knocking on their door for help.
"It is inevitable, we have seen spikes year on year.
"It could push a lot of people into struggling to put money on their meters, buying hygiene products, or even feeding their pets," said Simon.
Consumers urged to take meter readings
Those households on a standard variable tariff (SVT) – as opposed to a fixed deal – and who do not have a smart meter should submit their electricity and gas readings to their supplier as close as possible to October 1 to ensure any energy they use before this date is not inaccurately billed at the higher prices.
Suppliers who have not received meter readings base their bills on estimated usage, meaning households could be overpaying, while others may not be paying enough.
Price cap limits amount per unit, not your overall bill
The price cap sets a maximum price that energy suppliers can charge consumers for each kilowatt hour (kWh) of energy they use.
It does not limit total bills because householders still pay for the amount of energy they consume.
From October 1, households on a standard variable tariff that pay for their electricity by direct debit will pay on average 24.5p per unit, with a standing charge of 60.99p per day.
For gas, the average will be 6.24p per unit with a standing charge of 31.66p per day.
Ofgem said rising prices in the international energy market, due to heightened political tensions and extreme weather events, were the main driver behind the decision.
Winter fuel payments scrapped for those not on benefits
Millions of pensioners are also facing a winter with less support after the new Government decided to scrap winter fuel payments for those who do not receive pension credits or other benefits.
About 10 million pensioners will miss out on the payments of up to £300 this year.
October’s price cap will be significantly lower than during the peak of the energy crisis, which was fuelled by Russia’s invasion of Ukraine in February 2022, driving up costs in an already-turbulent market.
However, some experts think there could be a further increase in January, with more rises possible early in the new year due to escalating tensions in the Russia-Ukraine war.