Typical household energy bills increased by 27% in October 2022, the House of Commons Library has reported. The same research records a 54% rise in April 2022, meaning households faced two large increases in the same year1.
The figures come from the Library's briefing on domestic energy prices, part of its energy policy research on markets and prices. The briefing states that lower wholesale prices have since led to falls in prices, but that current bills are still 43% above their winter 2021/22 levels1. The same page notes that government policy currently focuses on energy security, high costs, and decarbonisation1.
The Library also sets out how the wholesale market works. Under the marginal cost pricing system, the wholesale price of electricity is set by the most expensive method needed to meet demand, usually burning gas1. That link between gas and electricity prices is central to how wholesale prices feed through to household bills, and the longer history of domestic energy prices is collected separately.
The sector itself was privatised in the 1980s, before which time it was dominated by regional public electricity suppliers, and by British Gas or Scottish Gas1. After privatisation the market was liberalised, with new suppliers entering and competing for customers, and the industry regulator is now the Office of Gas and Electricity Markets (Ofgem)1. Recent restructuring has included the introduction of a price cap and other schemes intended to protect consumers from high costs1.
"Typical household energy bills increased by 54% in April 2022 and 27% in October 2022."
| Date | Change in typical household energy bills |
|---|---|
| April 2022 | +54% |
| October 2022 | +27% |
Why it matters for households
A 27% rise on top of a 54% rise in the same year means the cost of running a home moved sharply in a short period, and the Library's own comparison puts bills at 43% above winter 2021/22 levels even after later falls1. For a household, that changes the arithmetic of energy independence: the standing cost of keeping a home warm and lit takes a larger share of income before any decision about tariffs or usage is made.
The structure described by the Library also matters. Because electricity is priced on the marginal cost system, with gas usually setting the price, a home's exposure to gas costs is not limited to gas use1. The price cap and related schemes exist to limit that exposure, and the Library records them as consumer protection measures rather than as changes to how energy is traded1. Where a household cannot absorb an increase, support arrangements differ by nation, including England, Scotland, Wales and Northern Ireland, which the Library treats as a separate market.
What happens next
The Library page records one dated item: a Westminster Hall debate on the British Energy Security Strategy scheduled for Tuesday 5 July 2022, from 2:30 to 4:00pm, led by Mick Whitley MP1. No further dated steps on bills or the price cap are given in this source.
Sources1 cited
- Energy policy research: Markets and prices, commonslibrary.parliament.uk