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Ofgem has confirmed that the energy price cap will rise by 10% to £1,717.
The maximum price for the average dual fuel energy tariff will rise from 1 October, Ofgem, the regulator for Great Britain, said. It will add about £12 to the standard fuel bill.
Ofgem’s price cap sets a maximum rate per unit and standing charge that can be billed to customers for their energy use – so the £1,717 number is only indicative, and households could pay more if they use more energy.
Ofgem said: "Rising prices on the international energy market – due to increasing geopolitical tensions and extreme weather events driving competition for gas – are the primary cause of the rise, accounting for 82% of the increase."
The price cap has effectively set prices across households since the start of the energy crisis that was triggered by the war in Ukraine. However, Ofgem told consumers to “shop around”, as some households could now potentially save money.
Jonathan Brearley, the chief executive of Ofgem, said: "We know that this rise in the price cap is going to be extremely difficult for many households. Anyone who is struggling to pay their bill should make sure they have access to all the benefits they are entitled to, particularly pension credit, and contact their energy company for further help and support.
"I’d also encourage people to shop around and consider fixing if there is a tariff that’s right for you – there are options available that could save you money, while also offering the security of a rate that won’t change for a fixed period."
The water watchdog for England and Wales, Ofwat, has confirmed that Thames Water will have to appoint independent monitors after breaching its licence conditions.
The water company will only be allowed to remove the monitors once it regains two investment-grade credit ratings – a requirement that suggests there is no end in sight for the monitoring period.
Thames Water’s rating was downgraded to junk status by agencies S&P and Moody’s in July, putting it in breach of its licence conditions.
Ofwat also confirmed that Thames Water, which supplies water to much of south-east England and all of London, has committed to “taking the steps required to deliver an equity raise” and “developing and delivering a suitable operational business plan to achieve turnaround”.
In practice it is unclear whether Thames will be able to meet these commitments in time to save it from running out of money.
The UK’s biggest water company, which has a £15.2bn debt mountain, has said it has enough cash to continue trading until at least May 2025. If it fails to secure new investment it could be placed into a special, government-handled administration.
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