The average household energy bill is to increase by £149 from October after Ofgem said it was increasing its price cap as households approach the winter months.

The regulator announced it is hiking its price cap by 10% from the current £1,568 for a typical household in England, Scotland and Wales to £1,717.

However, it is around £117 cheaper than the cap in October last year, which was set at £1,834.

Ofgem said rising prices in the international energy market, due to heightened political tensions and extreme weather events, was the main driver behind the decision.

It means households will be going into the colder months facing higher bills than they have had from April this year, when the price cap was lowered.

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.”

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

“We are working with Government, suppliers, charities and consumer groups to do everything we can to support customers, including longer term standing charge reform, and steps to tackle debt and affordability,” he added.

READ MORE:

The price cap sets a maximum price that energy suppliers can charge consumers 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 consume.

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: “We’ve braced ourselves for a challenging winter but today’s price cap increase 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.”