Average household energy bill set to SOAR in October in grim warning

The average household energy bill is set to rise by 9 per cent in October when the latest change to the price cap takes effect with a warning it could be the 'new normal', according to experts.

Energy consultancy Cornwall Insight said it expects the typical household’s energy bill to rise to £1,714 a year, up from £1,568 currently, on October 1. This is less than its previous prediction in June, when it estimated that the cap would rise by 9.9 per cent to £1,723.

But the group said there is also likely to be a further “modest” increase in January 2025, with more rises possible early in the new year due to “recent tensions in the Russia-Ukraine war”.

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Energy regulator Ofgem will announce the energy price cap for October to December on Friday, August 23.

Craig Lowrey, principal consultant at Cornwall Insight, said: “This is not the news households want to hear when moving into the colder months. Following two consecutive falls in the cap, I’m sure many hoped we were on a steady path back to pre-crisis prices.

“However, the lingering impact of the energy crisis has left us with a market that’s still highly volatile and quick to react to any bad news on the supply front. Despite this, while we don’t expect a return to the extreme prices of recent years, it’s unlikely that bills will return to what was once considered normal.

“Without significant intervention, this may well be the new normal.”

Ofgem changes the price cap every three months based on several factors, the most important of which is the price of energy on wholesale markets.

The energy price cap was introduced by the Government in January 2019 and sets a maximum price