Households across the UK are facing a fourth year of gas price increases, with annual energy bills set to rise by £600 from October, according to a report by the Energy & Climate Intelligence Unit (ECIU).
Meanwhile, the price cap is set to save households an average of just £17 this summer, in stark contrast to the looming hike at the tail end of the year. Fuelled by rising wholesale prices, the crisis could see average household annual energy bills reach £1,724 by October, a significant jump from a pre-crisis average of £1,150.
This surge in energy costs is expected to continue until at least October 2025, potentially adding an extra £2,600 to household energy bills during the period. The government’s financial intervention so far, which included spending £1,400 per home to mitigate the crisis’ impact, has done little to alleviate the financial strain on consumers.
Over-reliance on gas is costing UK consumers
The news highlights the UK’s over-reliance on gas and the volatile pricing of fuel, particularly as the increase will disproportionately affect households with poor energy efficiency. Homes rated EPC E or F will face the highest bills this winter. Homes rated E for gas and power are likely to experience bills of around £300 more than those for a typical home, while those rated F will likely pay around £500 more. The ECIU states that upgrading the energy efficiency of these homes could reduce bills by between £440 and £640 per year.
Read more: Current+
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