Ofgem has confirmed that household energy bills will rise by more than expected from October, with higher costs linked to managing wind farms on the grid.
The regulator announced a 2% increase in the energy price cap, double the 1% rise analysts had predicted. This means a typical household in England, Scotland and Wales will pay around £1,755 a year for gas and electricity – up from the current £1,720.
According to Ofgem, part of the increase is driven by balancing costs – the expense of paying wind farms to shut down when the grid cannot absorb their electricity, while gas plants closer to demand centres are paid to restart.
Industry data shows that Britain has already spent more than £815 million in 2025 on so-called “wasted wind”, equivalent to £3.4 million every day. That figure is sharply up from £631 million at the same point in 2024.
Political Debate Over Rising Bills
The rise has reignited political debate. The Conservatives argue Labour’s green energy drive, led by Energy Secretary Ed Miliband, is pushing costs higher. Labour disputes this, pointing instead to long-standing reliance on fossil fuels.
Consumer groups, meanwhile, have stressed that the price cap increase will squeeze households already struggling with high inflation and record levels of energy debt.
Sam Richards, chief executive of Britain Remade, said: “Balancing costs and delays in building new low-carbon capacity are keeping bills higher than they need to be. Planning reform and faster investment in infrastructure are essential if we want renewables to reduce, not raise, consumer costs.”
How Households Will Be Affected
From October, the price cap will set the following maximum rates:
While the overall increase amounts to around £35 a year, experts warn that the impact will feel much sharper during winter when energy use is higher.
Switching Remains the Best Option
Despite the price cap, millions of households remain on standard variable tariffs. Comparison experts say this is the most expensive way to pay for energy.
Households could save by exploring:
- Fixed tariffs that shield against future rises.
- Dual fuel deals combining gas and electricity.
- Green energy tariffs offering renewable supply at competitive rates.
Greg Marsh, an energy savings expert, commented: “Shopping around is the simplest way to cut costs. The best fixed deals available now are already under the October price cap level. Switching could save households hundreds of pounds over the winter.”
Consumers are being urged to compare electricity prices using trusted tools to check tariffs ahead of the October rise
Key Takeaway for Households
The regulator has warned that balancing costs will remain a feature of the grid until major network upgrades are completed. In the meantime, the only way for households to cut costs is by comparing energy prices and switching to better deals.
Households can use Free Price Compare today to find cheaper tariffs and protect themselves from rising costs this winter.
