Ofgem increases price cap from October meaning households face higher energy bills

The chief executive of Ofgem, Jonathan Brearley, has admitted the increase is going "to be extremely difficult for many households".

"Anyone who is struggling to pay their bill should make sure they have access to all the benefits they are entitled to, particularly pension credit, and contact their energy company for further help and support," he said.

He also urged consumers to "shop around" and consider opting for a fixed-rate tariff that could save people money.

The figures provided by Ofgem indicate what a household using gas and electricity, and paying by direct debit, can expect to pay if their energy use is typical.

Gillian Cooper, director of energy at Citizens Advice, said the announcement of the increase today "will no doubt see even more people fall behind on their energy bills".

"We're particularly concerned about households with children and young people and those on lower incomes, who are most likely to struggle with their heating costs," she said.

Price cap increase 'worrying', energy secretary says

Energy Secretary Ed Miliband has described Ofgem's price cap increase as "worrying" for many people.

The energy price cap will rise to an average annual £1,717 from October, the industry regulator has said - a 9.5% rise which Ofgem said was largely due to higher wholesale gas prices.

"This will be deeply worrying news for many families," Mr Miliband said.

He said: "The rise in the price cap is a direct result of the failed energy policy we inherited, which has left our country at the mercy of international gas markets controlled by dictators.

"The only solution to get bills down and greater energy independence is the government's mission for clean, home-grown power. 

"That's why we have hit the ground running, lifting the onshore wind ban, consenting unprecedented amounts of solar power and setting the largest-ever budget for our renewables auction."

Mr Miliband said he would "do everything in our power to protect billpayers, including by reforming the regulator to make it a strong consumer champion".

Households face higher energy bills as Ofgem increases price cap

The energy price cap will rise to an average annual £1,717 from October, the industry regulator has said.

Ofgem said that the 9.5% rise was largely due to higher wholesale gas prices.

The price cap is currently set at £1,568 per year for a typical household who use electricity and gas and pay by direct debit.

This means an extra £12.41 a month will be added to the average bill.

The price cap sets a maximum price that energy suppliers can charge consumers in England, Scotland and Wales for each kilowatt hour (kWh) of energy they use.

It means it does not limit a household's total bills, because people still pay for the total amount of energy that they use.

-SKY NEWS