Published by Global Banking & Finance Review®
Posted on August 27, 2025
1 min readLast updated: January 22, 2026
Add as preferred source on GoogleOfgem's 2% price cap rise will increase energy bills for millions in the UK, amid high inflation and government pressure on energy costs.
By Susanna Twidale
LONDON (Reuters) -Millions of British households will see higher energy bills from October after regulator Ofgem increased its price cap by 2%, in a blow to the government seeking to drive down energy costs.
The price hike comes amid strained household budgets after inflation hit its highest level in 18 months in July and as the government faces pressure over the affordability of its net zero plan.
Ofgem said the rise was due to an increase in network and policy costs.
(Reporting by Susanna Twidale in London, Raechel Thankam Job in Bengaluru; Editing by Janane Venkatraman and Tomasz Janowski)
Energy bills are increasing due to Ofgem raising its price cap by 2%, which is attributed to higher network and policy costs.
Inflation in the UK hit its highest level in 18 months in July, contributing to strained household budgets.
The government is under pressure to address the affordability of its net zero plan amid rising energy costs and inflation.
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