Energy prices will rise by 2% from October, Ofgem, the energy regulator, has announced today.

After the July energy price cap saw prices fall by 7%, this most recent announcement means the average household can expect to see an increase of £35 on their yearly energy bill when the cap comes into use at the start of October.

The news means that a household using a typical amount of energy will now pay £1,755 a year. This is everything you need to know.

The price cap, which is the tariff you default to if you’re not on a fixed tariff, sets the maximum rate per unit and standing charge that can be billed to customers for their energy use. From October, this rate is rising by around £2.93 per month for the average household. So, if you’re a typical household on a default tariff paying £100 per month, this will be £102 from October.

However, the latest figures from Ofgem show that more than a third of customers (37%) are on fixed tariffs, so therefore will be unaffected by the price increase. Ofgem is recommending households to shop around energy providers to find the best deals, as well as considering a fixed tariff.

‘While there is still more to do, we are seeing signs of a healthier market. There are more people on fixed tariffs saving themselves money, switching is rising as options for consumers increase, and we’ve seen increases in customer satisfaction, alongside a reduction in complaints,’ said Tim Jarvis, Director General, Markets at Ofgem.

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