Energy bills to rise

Energy price cap: How much gas and electricity does a typical household use?

The winter fuel payment U-turn in numbers

'Healthier market'

The increase, which is slightly more than analysts expected, means a household using a typical amount of energy will pay £1,755 a year, up £35 a year on the current cap.

The increase will kick in at the start of October, which campaigners say will mean another winter of relatively high energy bills.

Ofgem's cap sets the maximum price that can be charged for each unit of gas and electricity for millions of households in England, Scotland and Wales.

Individual households can calculate their estimated specific change

The cap sets the price for each unit, but not the total bill which depends on how much energy you use.

The change comes into force at the start of October and lasts for three months.

Ofgem changes the cap, largely based on the cost of energy on wholesale markets.

However, the rise in bills this time is partly the result of the higher cost of transporting energy and extra support measures for consumers, previously announced

Anyone on means-tested benefits will automatically receive the £150 Warm Home Discount on their bills. Some previously did not qualify owing to the size of their property, but that condition will be scrapped.

All billpayers will chip in to fund this extra support, mainly through higher standing charges - the fixed cost of connecting to the supply. It means standing charges will typically rise

The consumer group Which? said it could be a good time to shop around for a fixed-price deal, but billpayers should be alert to exit fees.

"Some contracts charge large fees to leave early, which would cancel out any savings," said Emily Seymour, from Which?.

Ofgem said that more than a third of billpayers were now on fixed deals, where the price of each unit is fixed for a year and unaffected

Tim Jarvis, director general of markets at the energy regulator, said this was a sign of a "healthier market".

He accepted that people would still feel the impact of a price rise, but added some could do things to save themselves money, such as paying via direct debit each month rather than receiving a bill every three months - called standard

Around 20 million households pay

Campaigners say many households are still struggling to pay bills, as well as repay energy debt that built up during a period of high prices.

Simon Francis, coordinator of the End Fuel Poverty Coalition, said this would mean another winter of high prices.

"The average family still paying hundreds of pounds more than they did just a few years ago," he said.

Families enjoying chips at New Brighton, Merseyside, may have been making the most of the sunshine, but the cost of living still looms large.

"At the moment, it's been ok, but I think the winter might be a different story," said Elisha, who has an 11-week-old baby, Theo.

The government, which earlier this year made a U-turn on winter fuel payments, said it was determined to help vulnerable families

Energy minister Michael Shanks said the government wanted more clean energy produced domestically to bring down prices.

Liberal Democrat leader Ed Davey said "the last thing" families and pensioners needed was higher energy bills this winter.