Octopus Energy issues statement on bills as 'prices set to rise'
Energy giant Octopus has released an update on the expected fluctuations in gas and electricity bills over the coming year. The typical charges are governed by the Energy Price Cap, which is reviewed and set by Ofgem every quarter.
This regulatory measure necessitates that households adjust to bill changes on a quarterly basis. Energy providers attempt to forecast future charges to provide customers with an estimate of their potential expenses for the next six or 12 months. Such predictions can also affect decisions regarding whether to fix energy bills. However, official prices are only confirmed closer to the time.
The price cap for the period from July to September has been established at £1,720 per month, reports Birmingham Live. Octopus has expressed "fairly confident" expectations of a £38 increase from September.
A further hike of £11 could follow from January, spelling more woes for cash-strapped Britons, although this remains "uncertain".
There's a glimmer of hope that charges might begin to decrease from April next year, with a more significant reduction potentially occurring from July 2026.
Octopus anticipates a £42 cut at that juncture, but admits to having "very low confidence" in this long-term prediction due to the challenge of accurately forecasting prices over such an extended period.
Even with the anticipated reductions, if they materialise as projected, bills will roughly return to their levels from July 2025, indicating that high charges are likely to persist.
Octopus stated: "Ofgem's Energy Price Cap changes every few months and it can be tricky to figure out how it'll affect your bills.
"To help, we've created a yearly forecast designed to put your mind at ease and take the guesswork out of managing your energy.
"From 1 July to 30 September 2025, the price of energy for a typical home that uses both electricity and gas, and pays by direct debit, will go down by 7% to £1,720 per year – reducing energy bills for a typical home by £11 a month.
"The energy price cap only applies to those on a flexible tariff (or variable tariff). Even though the price cap has come down a notch, it's worth thinking about locking in your rates on a fixed tariff – as these currently offer our cheapest prices."
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