Under the new price cap, the yearly energy expenditure of a typical home would increase by £149 in October.

A typical user of gas and electricity will spend £1,717 a year, an increase of 10% from the current cost.

The energy regulator Ofgem established the cap, which has an impact on the cost of gas and electricity used in 27 million homes in England, Wales and Scotland.

While costs are still lower than they were the previous winter, the increase in bills coincides with the withdrawal of some help for bills and the announcement by the new government that it will stop providing winter fuel payments to 10 million seniors in England and Wales.

This year, energy prices have decreased twice: in April and July. However, they will rise again in the lead-up to winter, costing an average user around £12 per month.

In order to determine the impact on household payments this autumn, billers may increase their existing yearly bill by 10%.

According to Ofgem, the increase in the price cap is the outcome of rising energy prices on the global market as a result of escalating geopolitical tensions and extreme weather that fuel demand and competition for gas, which sets the price of wholesale power.

A typical household's bills will still be £117 less annually than they were in October of last year, but economists predict more price increases in January.

Gas and electricity standing costs are increasing by one cent every day, although the regulator is thinking of revamping the system.

(Sources: bbc.co.uk)