The energy price cap is set to increase to an annual average of £1,928 starting from January. According to the regulator Ofgem, households paying by direct debit for gas and electricity can expect a five percent rise. This adjustment reflects higher wholesale costs as we enter the colder winter months and a modification in Ofgem's cap calculation methodology.

Rising volatility in the wholesale market, influenced by geopolitical events such as the conflict in Ukraine, the Israel-Hamas dispute, and labor strikes at gas production facilities in Australia, has collectively led to an increase in energy unit prices.

Dr. Craig Lowrey, principal consultant at the Cornwall Insight energy consultancy, expressed concern, stating that amidst the cost-of-living crisis, a rise in energy bills, especially heading into winter, is challenging for households. Earlier in the year, there was optimism as consumer bills were gradually decreasing after the sharp rises following Russia's invasion of Ukraine. However, new challenges have emerged in the energy market, and the UK's dependence on foreign energy has once again exposed it to price increases due to global events.

With limited direct energy bill support expected from the Autumn Statement, consumers may consider reducing energy usage to cope with high bills, particularly since bills remain significantly above historical averages. Looking ahead to 2024, persistent high unit costs and the upcoming increase in electricity standing charges from April further contribute to concerns.