Ofgem update: Energy price cap to increase by 10% in October in 'another blow' to Britons

This hike is more than previously predicted by Cornwall Insights which forecast the price cap as coming in at £1,714 a year, up from £1,568 currently.

The energy price cap is based on a variety of factors including wholesale energy prices.

This is the amount energy suppliers pay for gas and electricity before supplying it to households with the cap being updated every three months.

As a result of the pending hike, the average household will now face higher energy bills during the winter months.

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Reacting to the Ofgem's decision, Warm This Winter spokesperson Fiona Waters said: "This price hike is yet another blow to the 6.5 million in fuel poverty who, like every other bill payer in the UK, are still forking out 65 percent more than they did for their energy than at the start of the crisis.

“Meanwhile energy companies have been profiteering, making more than £470billion since 2020.

"That shows there is money in the system but that is going to energy bosses and their shareholders when it needs to go to ordinary people.

“Today just highlights the Government’s policies on renewables and energy efficiency are needed to mend this broken system but we also need help now to get everyone of all ages through the winter ahead.”

Despite the disappointment over Ofgem's price cap rise, it will £117 cheaper than the cap in October last year, which was previously et at £1,834.

According to the regulator, soaring wholesale energy prices in the international market was the primary contributing factor to price cap going up further.

Jonathan Brearley, the chief executive of Ofgem, said: “We know that this rise in the price cap 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.”

Brearly has called on consumers to shop around for the best deal to ensure they are not paying more for gas and electricity during the winter months.

The chief executive recommending securing a fixed rate tariff which could lead to sizable savings for families.

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Gareth Kloet, a spokesperson for Go.Compare Energy, said "Today’s announcement will be a disappointment for many, particularly as we’ve been seeing the price cap drop in recent months.

"The timing is also unfortunate, given we are about to head out of summer and into the colder months, where energy usage naturally increases.

"And with the recent news that the winter fuel allowance will be withdrawn for some billpayers, this winter’s price hike could hit many households especially hard."