The average household could spend more than £3,500 per year on energy from October.

The average household in Cherwell could spend more than £3,5000 per year on their energy bill when the new price cap comes into effect in October, analysis suggests.

Ofgem, the UK’s energy regulator, announced last week that it will increase the energy cap from October 1.

Which means the maximum price a supplier can charge for electricity will rise on average from 28p per kilowatt-hour (kWh) to 52p per kWh, while gas will increase from 7p to 15p per kWh.

Including standing charges, it means the average household’s energy costs on a variable tariff in the UK will increase by 80 per cent – from £1,971 to £3,549 per year.

Energy charity National Energy Action (NEA) said millions now face a “big freeze” and urged the government to act immediately to provide greater support ahead of the winter.

Department for Business, Energy and Industrial Strategy figures show the average household in Cherwell used a median amount of around 3,194 kWh of electricity and 11,600 kWh of gas in 2020.

A kWh is the amount of energy required to provide one kilowatt of power for one hour and the median – the middle number in a series – is used to ensure the figures are not skewed by extreme highs or lows.

One kWh would run an average oven for around 30 minutes.

At current prices, it means the average household on a variable tariff in the area would be paying around £1,970 per year to heat and fuel their home.

But when the price cap increases in October, this will soar to approximately £3,670.

Households on a fixed tariff will pay for energy at their current rate until the term comes to an end.

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Adam Scorer, Chief executive of the NEA, said the scale of harm caused by soaring prices needs to sink in, and that warm homes will be a “pipe dream” for many this winter as they wrestle with higher tariffs.

Mr Scorer added: “Without bold action to support the most vulnerable and those on the lowest incomes, this will effectively prise their fingers from the cliff edge and push them over the precipice.

Energy consultancy firm Cornwall Insights expects the price cap to rise dramatically again in January and April, with yearly energy costs reaching £5,400 and then £6,600 for the average UK household.

A government spokesperson said direct financial aid, targeted at the most vulnerable, will “continue to reach people’s pockets in the weeks and months ahead.”

They added that preparations have been made to ensure this support can be implemented as quickly as possible when the new prime minister is in place.

 

Read more from this author

This story was written by Matthew Norman, he joined the team in 2022 as a Facebook community reporter.

Matthew covers Bicester and focuses on finding stories from diverse communities.

Get in touch with him by emailing: Matthew.norman@newsquest.co.uk

Follow him on Twitter: @OxMailMattN1

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