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Ofgem has confirmed that energy bills for UK households will increase by £35 from October, raising the average annual bill from £1,720 to £1,755.
This 2 per cent rise contradicts earlier predictions of a price fall and follows a previous reduction in July.
A portion of the increase is attributed to the expansion of the Warm Home Discount scheme, which will add approximately £15 to a typical bill while supporting 2.7 million vulnerable households.
Wholesale energy prices remain volatile due to global political instability and uncertainty surrounding US trade policy.
Experts and officials acknowledge the burden on consumers, particularly lower-income households, and stress the need for long-term solutions like homegrown clean energy to stabilise prices.