Energy price cap rises despite fixed tariff protections

Summarised from 2 outlets · 3 reports · Updated 9 Oct, 07:14 · Archive

The energy price cap increased by 4 per cent on October 1, pushing average household bills to £1,723 per year.

The energy price cap increased by 4 per cent on October 1, with regulator Ofgem saying bills would rise by £60 per year, or £5 per month, to an average of £1,723 for households using both electricity and gas. This represents the highest level since July 2023.

Although fixed tariffs protect customers from the price cap increase, Money Saving Expert's Martin Lewis has warned that those on fixed rates may still see their bills rise. The fixed tariff locks in the standing charge and unit rate for the entire length of the contract, but this does not prevent bill increases from other causes.

Lewis identified two reasons bills may increase despite a fixed tariff. The most straightforward is that households use more energy, meaning they pay more units at the locked-in rate. The second, more complex reason involves direct debit estimates: energy companies may estimate that customers are using more energy than they actually are, raising monthly payments accordingly.

How it is being reported

• Energy bills are expected to surge in 2027: Here's how to lock in a cheaper fixed energy tariffThe energy price cap was hiked on October 1 and is predicted to rise again in January. If you're not on a fix, you can find tariffs that should save you money in the colder months.This is Money · 9 Oct, 07:00
• Martin Lewis warns fixed tariffs won’t stop your energy bill rising - how to avoid itThe price cap rise will push bills to their highest since July 2023The Independent · 8 Oct, 15:55
• Martin Lewis warns a fixed rate tariff can rise – how to avoid itThe price cap rise will push bills to their highest since July 2023The Independent · 8 Oct, 10:20

In this story: Martin Lewis · Money Saving Expert · Ofgem

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem