In fresh blow to consumers it has been confirmed that energy bills are set to rise by an average of £149 a year from October under the new price cap.
The announcement from Ofgem will see the price cap rise to £1,717 per year for an average household, due to rising prices on the international energy market.
The regulator says this will add £149 to average annual energy bills, or an extra £12 per month.
While this is an increase on current bills the regulator confirmed that the new cap will be around six per cent cheaper than the same period last year, when the average bill was capped at £1,834.
The energy regulator blamed higher international energy prices, including geopolitical tensions, such as following the invasion of the Ukraine by Russia, continuing military action in Gaza and extreme weather events, which are driving higher competition for gas. Ofgem said these factors were behind over 80 per cent of the increase.
Jonathan Brearley, CEO 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.
A Labour spokesperson, commented: “This price increase is the harvest of 14 years of Tory neglect and failure to prepare and invest in British-owned clean energy. While they were quick to blame everybody but themselves during the energy crisis, the Tories dragged their feet on energy security and took a hammer to the renewable energy sector, with working families still paying the price.
“The Labour Government has hit the ground running to tackle the root causes of high energy prices. In under fifty days we have set up Great British Energy to cut bills for good, lifted the onshore wind ban, consented unprecedented amounts of solar power and have set the largest ever budget for our renewables auction.
“Labour’s bold energy plans will warm homes across the country, cut energy bills for good and create thousands of high-skilled, well paid jobs as we move towards cheaper, homegrown clean power.”
However, the Conservatives claimed that this increase was being made worse by Labour failing to prioritise “cheap energy”.
Claire Coutinho MP, Shadow Energy Security and Net Zero Secretary, said: “Instead of prioritising cheap energy, the new Labour Government are pursuing Ed Miliband’s reckless net zero targets with no thoughts to the costs”.
She went to condemn, Chancellor Rachel Reeves announcement last month that she would scale back energy support for pensioners as part of her bid to plug an alleged £22 billion blackhole in the nation’s finances.
At the time, Ms Reeves said that winter fuel payments, which are currently worth £200, while pensioners over 80 receive £300 and were previously paid by all pensioners, will be means-tested and will only go to those also receiving Pension Credit.
Ms Coutinho continued: “Far from their promise of saving families £300 off their energy bills, one of their first acts in office is to remove the Winter Fuel Payment from 10 million pensioners this winter.“Because they weren’t honest about their plans that means millions of pensioners will have made no plans to deal with higher energy bills this winter.”