Starting October 1, the average household energy bill in the UK is set to rise by 9%, increasing from £1,568 to £1,714 annually, as confirmed by energy consultancy Cornwall Insight.

This new price cap is £121 lower than last winter's cap of £1,835, which was driven by soaring global energy prices due to the ongoing war in Ukraine.

The primary driver for this increase in energy bills is a rebound in wholesale energy costs, which had previously fallen to 30-year lows earlier this year.

Consumer advocacy groups are urging the government and the energy regulator, Ofgem, to take immediate action to lower energy prices and address the growing customer debt, particularly for vulnerable households.

Energy debt has reached a record high of over £3 billion, adding to the financial strain on many households as winter approaches.

In addition to rising bills, approximately 10 million pensioner households will not receive annual Winter Fuel Payments this year due to new eligibility criteria, which could further exacerbate their financial difficulties.

The Winter Fuel Payment, which previously provided between £100 and £300 to eligible pensioners, will now be limited to those on means-tested benefits.

While prices have stabilized compared to the previous two years, the energy market remains affected by the ongoing crisis and global supply disruptions.

Craig Lowrey, a principal consultant at Cornwall Insight, emphasized the need for both immediate and long-term strategies to ensure energy affordability as households prepare for colder months.

The Warm Home Discount Scheme, which provides financial relief for low-income households, is set to open in October, although the list of participating energy suppliers is yet to be confirmed.

Ofgem is currently reviewing the price cap system and considering reforms, including potential adjustments to standing charges that disproportionately affect low-energy households.