Energy prices to rise by 10% in October, report predicts

  • Energy prices dropped from 1 July
  • The average direct debit household will save £122 per annum
  • Cornwall Insight predicts prices will rise again in October
Figuring out energy bill prices next to smart meter

Energy prices fell at the start of July, but they will increase in October, according to new data

Energy prices are likely to rise by as much as 10% in October despite a decline at the beginning of July, according to analysis from Cornwall Insight.

The prediction comes after Ofgem’s latest price cap of £1,568 per year for a typical household for England, Wales and Scotland came into effect on 1 July, saving those who pay by direct debit £122 per year.

Cornwall Insight, however, has predicted that the typical household will pay 10% more or £155, from October, £1,723 per annum, but is still a £40 a year drop compared to the May forecast. 

Dr Craig Lowrey, principal consultant, Cornwall Insight, said: “The drop in forecasts for October are positive, but we need to keep this in perspective. We are still facing a 10% increase in bills from October, and as winter approaches this will put a strain on many household finances.” 

The price cap is updated every three months and Ofgem determines it by the average annual bill for a household using a typical amount of gas and electricity. 

For those in smaller households, for example, will likely pay less as their usage is lower on average, while a larger household will pay more. 

The reason for this is Ofgem limits the maximum price that can be charged for each unit, rather than the total bill.

Those on prepayment metres are often under more financial pressures and won’t see as big an impact straight away. 

What are the latest gas and electricity prices?

The new pricing structure that came into effect from 1 July to 30 September mean:

  • Electricity prices are 22.36p per kWh, down from 24.50p per kWh, and gas prices are 5.48p per kWh, reduced from 6.04p per kWh
  • The average household who pay by direct debit will pay £1,568 per annum, a £122 decrease from the first quarter of 2024
  • Prepayment meter households will pay £1,522 on average per annum, £122 saving from the first quarter of 2024
  • There’s little change with standing charges. Electricity standing charges have increased to 60.12p daily (from 60.10p), while gas has declined, from 31.43p daily to 31.41 daily
Written by:
Tamara Birch, senior writer, The Eco Experts
Tamara has written about environmental topics for more than four years. This includes advising small business owners on cost-effective ways, like solar panels and energy-efficient products to help them become more sustainable. 
Reviewed by:
Max joined The Eco Experts as content manager in February 2024. He has written about sustainability issues across numerous industries, including maritime, supply chain, finance, mining and retail. He has also written for  City AM, The Morning Star and the Daily Express.
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