Manchester, 5 September 2025 – Families across the North West will soon face higher energy bills, as Ofgem confirms its October price cap. With average dual-fuel costs rising to £1,755 a year, residents are being urged to review their tariffs now.
Why Bills Are Rising
The latest rise amounts to an extra £35 a year, but analysts say its timing — ahead of peak winter demand — will magnify the impact. Ofgem explained that structural costs are the main reason for the increase rather than wholesale gas and electricity markets.
Balancing the grid has become a costly exercise. Wind farms are often paid to switch off during oversupply, while gas plants must be restarted during shortages. These costs added £2.7 billion nationally in the last financial year and continue to feed through into consumer bills.
The Warm Home Discount expansion is another factor. While the policy delivers £150 in direct support to 2.7 million more low-income households, it adds about £15 to the annual cost for all billpayers. Standing charges are also climbing: electricity will rise to 53.68p per day and gas to 34.03p per day, up from 51.37p and 29.82p respectively.
Regional Pressures
The North West is expected to feel the squeeze more than most regions. Colder winters and older housing stock mean households here use more energy than the national average. Even a 2% rise, equivalent to £35, could leave many families struggling to keep up.
Dr Craig Lowrey, principal consultant at Cornwall Insight, commented:
“Energy costs remain volatile and unpredictable. For households in the North West, where consumption is higher, the impact of these increases will be particularly sharp during winter months.”
How Households Can Respond
Experts stress that the price cap does not guarantee the cheapest deal. Standard variable tariffs are capped, but fixed and alternative deals often work out cheaper. Residents in the North West are encouraged to:
- Compare gas prices to identify lower tariffs.
- Use a trusted energy comparison tool to see how much could be saved by switching.
- Consider dual fuel tariffs to secure discounts when combining gas and electricity.
Greg Marsh, an independent energy adviser, said:
“The price cap protects households on variable tariffs from extreme overcharging, but it does not guarantee the lowest rates. Families who compare energy suppliers and switch ahead of winter stand to save the most.”
Strain on Families
The End Fuel Poverty Coalition has highlighted that more than 12 million households remain in fuel poverty nationwide, with average debts above £1,000. For the North West, where incomes often trail the UK average, this means the October rise could have a disproportionate effect.
Simon Francis of the coalition added:
“Government support is helpful, but bills remain far too high compared with just a few years ago. The best immediate defense for households is to review tariffs and switch to a more affordable option.”
Outlook
Cornwall Insight expects a small reduction in January 2026, though much depends on weather, international gas markets, and policy decisions. Until then, residents in the North West are advised to act quickly to secure stability before colder months drive up energy usage further.
