Energy bills in Great Britain are set to rise again in October, marking the second increase within three months. The government’s price cap will climb 4% starting 1 October, bringing typical annual costs to £1,723 for approximately 22 million households on standard tariffs. This follows a 13% increase that took effect at the start of July. Forecasters have also predicted an additional 9% rise anticipated for January, which would further elevate costs to around £1,872 annually.
Despite these increases, households have options to mitigate rising costs through fixed-rate energy contracts. Approximately 35% of homes are already protected under existing fixed tariffs and will not be affected by the upcoming cap changes. For those not yet locked into fixed deals, price comparison websites indicate numerous tariffs available at rates below the October price cap level. The lowest-priced fixed option identified on the market costs £1,550 annually for typical usage—£173 below the October cap and £113 below current rates. Multiple other suppliers including Co-op Energy, Octopus Energy, E.ON Next, and Ecotricity offer fixed contracts delivering savings exceeding £100 annually compared to the price cap.
Energy regulator Ofgem has emphasized the benefits of fixed tariffs, noting savings of £100 or more are achievable. Fixed contracts provide certainty over payment amounts throughout their term, typically one to two years, protecting consumers from future wholesale price fluctuations. Potential switchers should verify their existing contract terms and any associated exit fees before transitioning to new arrangements.
Other government support measures are also available. A temporary VAT reduction on domestic electricity from 5% to zero, running from 1 October through 31 March 2027, will provide approximately £45 in annual savings for typical households. Additionally, the warm home discount scheme, offering a one-off £150 electricity bill reduction, will reopen in October. Ofgem also recommends investigating tariffs offering lower rates for off-peak electricity usage for smart meter customers.
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