More than seven million households on standard energy tariffs face higher bills from October 1st and should submit meter readings immediately to avoid paying increased rates. The energy price cap will rise by 2% for typical households across England, Scotland and Wales, pushing annual bills from £1,720 to £1,755 for average direct debit customers.
The timing coincides with cooler autumn temperatures as many households switch on central heating for the first time. Uswitch calculated that average homes on standard tariffs will spend £140 on energy in October compared with just £63 in September, reflecting both higher rates and increased seasonal usage.
Urgent meter reading advice
Energy customers without smart meters must act quickly to avoid overpaying. Ben Gallizzi from Uswitch said: "Households should take a moment to read their energy meter in the coming days to avoid the possibility of being charged at October's higher energy rates."
He added: "Customers who don't have a smart meter should submit their readings before or on Wednesday October 1, so their supplier has an updated - and accurate - view of their account."
Fixed deals offer savings
Households can still secure cheaper rates by switching to fixed-price deals before the cap increase takes effect. Gallizzi said: "Currently, there are a range of fixed deals currently available that are around £215 cheaper than the October price cap for the average household."
Energy comparison sites show multiple options for customers willing to lock in current lower rates. Gallizzi said: "If you can switch to a deal cheaper than the October price cap, now is a good time to make the change. We urge customers to run an energy comparison as soon as possible."
Standing charges drive increases
The price rise comes despite wholesale energy costs falling by 2% over the three months before Ofgem's latest decision. However, daily standing charges - the fixed cost of having energy supplied - will increase significantly, rising 4% for electricity and 14% for gas, adding 7p per day to bills.
The Government's expansion of the Warm Home Discount scheme primarily drives the standing charge increases. An additional 2.7 million low-income households, including 900,000 families with children, now qualify for the £150 winter discount after eligibility criteria were relaxed.
Broader cost pressures
Network balancing costs also contribute to rising bills, adding approximately £1.23 monthly to average household payments. These charges help electricity operators maintain stable supply when the grid has too much or too little power.
The End Fuel Poverty Coalition highlighted that energy bills remain 68% higher than winter 2020-21 levels, representing an additional £713 annually for typical households. The regulator reviews and adjusts the price cap every three months based on wholesale market costs.
Sources used: "PA Media" Note: This article has been edited with the help of Artificial Intelligence.
