Around 24 million UK households are expected to be affected.
The energy price cap is to be a hiked by a record 80% from October to £3,549 a year, Ofgem has confirmed this morning, reports The Manc.
As the rising cost of living crisis worsens and continues to make its impact felt nationwide, and after inflation hit another new 40-year UK high of 10.1% earlier this month, millions of households across the UK on a typical default tariff are set pay an extra £1,578 on their energy bills in as the price cap is raised from 1 October 2022.
It follows an already 54% increase in April, which saw average bills surge to £1,971 a year, and comes ahead of the predicted tripling of average bills in April 2023.
Around 24 million UK households are expected to be affected by the price spike.
The new price cap level is based on "a transparent methodology and calculations" by energy price regulator Ofgem.
The price cap puts a maximum per unit price on energy that reflects what it costs to buy energy on the wholesale market and supply it to our homes, and it also sets a strict and modest profit rate that suppliers can make from domestic energy sales - but, unlike energy producers and extractors, most domestic suppliers are currently not making a profit, according to Ofgem.
Ofgem says the price cap increase reflects the "continued rise in global wholesale gas prices" - which began surging post-lockdown and have been driven to record levels by Russia slowly switching off gas supplies to Europe.
The confirmed energy price cap rise also comes as Ofgem’s CEO warns of the hardship energy prices will cause this winter and urges the incoming Prime Minister and new cabinet to provide "an additional and urgent response" to continued surging energy prices.
"We know the massive impact this price cap increase will have on households across Britain and the difficult decisions consumers will now have to make," said Jonathan Brearley - CEO of Ofgem.
"I talk to customers regularly and I know that today’s news will be very worrying for many.
"The price of energy has reached record levels driven by an aggressive economic act by the Russian state. They have slowly and deliberately turned off the gas supplies to Europe causing harm to our households, businesses and wider economy [and] Ofgem has no choice but to reflect these cost increases in the price cap.
Ofgem raises energy price cap to £3,549 from October / Credit: Pxhere
"The government support package is delivering help right now, but it’s clear the new Prime Minister will need to act further to tackle the impact of the price rises that are coming in October and next year.
"We are working with ministers, consumer groups and industry on a set of options for the incoming Prime Minister that will require urgent action [but] the response will need to match the scale of the crisis we have before us.
"With the right support in place and with regulator, government, industry and consumers working together, we can find a way through this."
Get ready to take the plunge Leeds, as a community-led sauna and ice bath concept has landed in the city centre.
Hidden behind a railway arch in Saxton Gardens, Kontrast has brought its popular sauna and ice bath concept to the city.
Following the huge success of its Manchester site, Kontrast Leeds combines saunas, ice baths and a cafe designed to bring wellness into everyday life.
The Leeds space features two traditional saunas, one infrared saunas and four ice baths each varying in temperature between 3 and 13 degrees.
Images: The Hoot Leeds
The space is absolutely gorgeous, complete with trendy tin ceilings, fairy lights and soft furnishings.
Plunge pools can be enjoyed solo or shared, depending on what guests choose, giving people the opportunity to shape each session around exactly what they need that day.
Images: The Hoot Leeds
The same goes for the saunas, with one silent and one sauna giving guests the option to come for conversation or reflection.
Single sessions will cost just £12 for 45 minutes, with 90-minute sessions from £20.
There's a fab little cafe too offering all sorts from electrolyte slushes to ginger shots and a range of coffees and matcha.
Images: The Hoot Leeds
Known for making sauna and ice feel more accessible, welcoming and community-driven, Kontrast has grown beyond regular sessions to become a base for recurring events. These include their live ambient DJ set event, Unwind, which celebrates local talent, and their weekly run club, both of which the team hopes to bring to Leeds as part of building a similar sense of community in the city.
Officially opening their doors this Friday 29 May, Kontrast are offering free sessions over the weekend so you can try before you buy. Book your spot here.
North Star Coffee announces opening date for new site – and they’re giving away 200 coffees to celebrate
Clementine Hall
One of Leeds' most iconic brands is expanding with two city centre openings.
Coffee lovers, you're going to love this one.
North Star Coffee Roasters are one of the early pioneers of specialty coffee in the North of England and among the UK’s first B Corp-certified coffee roasters.
They've been keeping the people of Leeds awake since 2013, and you'll find their coffee across the country as well as at their current city centre locations.
One of their brand-new locations inside the Victoria Quarter will be opening next Monday 1 June.
Their new kiosk will be located outside Jo Malone London and marks the brand’s third site in Leeds.
Images: The Hoot Leeds
To celebrate the launch, North Star will be giving away 50 free coffees a day from Tuesday 2 June until Friday 5 June - a total of 200 free drinks across the opening week. Customers will be able to claim any coffee from the menu, with one free drink per person available on a first come, first served basis, each day.
Their other new site is expected to be on Great George Street, and we'll keep you updated with any news on that one as and when we know more.
Speaking about the opening, Holly Kragiopoulos, Co-founder of North Star, said: “Opening a third site in the centre of Leeds feels incredibly special for us. Leeds has always been at the heart of North Star, so being able to bring our coffee into Victoria Quarter is a huge milestone.
"We wanted to celebrate by giving something back to the city and welcoming both loyal regulars and new customers with free coffee throughout our opening week.”
The Hoot -
26th August 2022 
