An increasing number of households are feeling the squeeze of rising energy costs as their fixed-term deals expire, according to the latest Energy Monitor from the Authority for Consumers & Markets (ACM). These consumers join approximately 3.7 million households already on variable or dynamic tariffs facing higher monthly bills.
The watchdog also warned that roughly 700,000 households connected to district heating networks will see significant price hikes from 1 January, because maximum heat tariffs remain legally tied to natural gas prices, which have climbed further over the past month. The ACM expects the average household on a district heating network to pay roughly 25 per cent more for heat next year, prompting the regulator to call on suppliers to limit rate increases strictly to what is necessary to cover genuine costs—particularly for providers that do not rely on natural gas for production.
Meanwhile, the proportion of households on fixed-rate deals continues to shrink, with consumers automatically rolled over onto variable tariffs once their existing terms end. The ACM noted that rates for new fixed gas contracts have risen by nearly 5 per cent over the past month alone, reaching their highest levels since the 2023 energy crisis.
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