Household energy bills will rise in October – and Labour ministers have been accused of bending the truth over the reasons why.
Ofgem confirmed the price cap will increase from £1,720 to £1,755 per year, citing higher “electricity balancing costs” – the fees incurred when surplus wind power has to be switched off because the grid cannot handle it.
So far in 2025, Britain has spent an estimated £815million on shutting down wind farms and firing up gas plants instead, up more than a quarter on last year. The National Energy System Operator expects the annual cost to hit almost £4billion by 2030.
Despite this, the Government has pinned the rise on a “fossil fuel penalty”, although Energy Secretary Ed Miliband's use of the term was corrected by fact-checkers online.
Energy minister Michael Shanks said bills were being driven higher by gas, insisting only a rapid expansion of clean power could bring them down for good.
Critics said this was “patently untrue”. Conservative shadow energy secretary Claire Coutinho accused Labour of misleading the public.
She said: “Wholesale prices are falling. Bill rises have come from balancing costs – the costs of using renewables – and rising standing charges from Labour’s redistribution policies.
“These figures and Labour’s response make it crystal clear that Ed Miliband is not interested in the truth or cutting bills.”
Analysts also questioned the credibility of Energy Secretary Ed Miliband’s pledge to cut household bills by £300 a year by 2030. Andy Mayer of the Institute of Economic Affairs said it was “obviously impossible” given the growing costs of wasted wind.