Energy prices will rise by 10% from October ahead of the colder winter months, Ofgem confirmed on Friday.
At £1,717, Ofgem’s energy price cap will be increased by £149 on its current level for standard variable tariff holders.
Ofgem’s cap reflects what households would pay on an annualised basis and effectively determines how much suppliers can charge per unit of energy.
This means 28 million households across England, Wales and Scotland will be charged more from October to December for the amount of energy they use.
Electricity will rise from 22.36p to 24.50p per kilowatt hour from October, while gas will increase from 5.48p to 6.24p.
Daily standing charges, paid regardless of usage, will rise too, from 60.12p to 60.99p for electricity and 31.41p to 31.66p for gas.
This follows an increase in wholesale energy prices for suppliers, with gas having climbed recently as Ukrainian forces launched an incursion into Russia.
Higher network and operating costs for suppliers have also been reflected in the new cap, according to Ofgem, alongside earnings and headroom allowances.