"The energy price cap will increase from 1 October for the 15 million customers it protects. Those on default tariffs paying by direct debit will see an increase of £139 ($193) from £1,138 ($1,583) to £1,277 ($1,777)". the office stated.
The sharp 12% rise, which will affect half the population, is provoked by an over 50% surge in wholesale fuel costs over the last six months, with gas prices hitting a record high as global economies struggle to overcome COVID-19 aftermath, Ofgem explained.
Citizens are eligible for various assistance programs such as affordable debt repayment plans, payment breaks, and emergency credits.
The new rules are expected to disproportionately affect low-income families across the UK, where 2 million households are already behind on paying their energy bills.