Energy prices to rise by 10% in October, report predicts
Energy prices to rise by 10% in October, report predicts
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Published on 2 July 2024
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
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 BirchSenior Writer
Tamara is a London-based journalist and 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.
She has used her journalist and research skills to become highly knowledgeable on sustainable initiatives, issues, and solutions to help consumers do their bit for the environment - all while reducing monthly costs.
In addition to adopting sustainable practices in her personal life, Tamara has worked in the retail B2B space to help independent retailers think about their environmental choices and how they can help improve their business. She now uses this knowledge to help consumers do the same.
Her passion for sustainability and eco-friendly solutions stems from a long obsession with nature and animals and ensuring they feel looked after. In her free time, Tamara enjoys reading fantasy novels, visiting the gym, and going on long walks in new areas.
You can get in touch with Tamara via email at tamara.birch@mvfglobal.com.
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 extensively for consumer titles like City AM, The Morning Star, and The Daily Express.
In 2020, he covered in detail the International Maritime Organisation’s (IMO) legislation on sulphur emissions and its effects on the global container shipping market as online editor of Port Technology International.
He also explored the initiatives major container ports and terminals have launched in order to ship vital goods across the world without polluting the environment.
Since then, he has reported heavily on the impact made by environmental, social, and governance (ESG) practices on the supply chain of minerals, with a particular focus on rare earth mining in Africa.
As part of this, in 2022 Max visited mines and ports in Angola to hone in on the challenges being faced by one of the world’s biggest producers of rare earth minerals.
His most recent sustainability-related work came much closer to home, as he investigated the eco-challenges faced by independent retailers in the UK, specifically looking at how they can cut emissions and continue to thrive.
Max lives in South London and is an avid reader of books on modern history and ghost stories. He has also recently learned to play the game Mahjong and takes every opportunity to do so. He is also yet to find a sport he doesn’t enjoy watching.
