Why energy prices are rising again

Soaring demand leads to wholesale gas price increases being passed on to consumers

A gas hob
(Image credit: Martin Bernetti/AFP/Getty Images)

Energy prices are expected to soar this autumn after the regulator said it would increase its cap on the most widely used tariffs, blaming a rise in wholesale energy prices.

Ofgem said the cap for average annual consumption on the standard tariffs, used by about 11 million British households, will rise by £139 to £1,277. For the four million homes with pre-payment energy meters, it will rise by £153 to £1,309.

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