Ofgem, the UK’s energy regulator, is planning to allow providers to raise their prices from October. These plans could affect millions of Brits. The cap on energy prices is to rise and with it the cost of gas and electricity for millions of households.

       Ofgem is expected to increase the cap on prices for electricity and gas, allowing suppliers to raised their prices.

       Prices could increase by as much as 13 percent from October which could affect 15 million households, according to The Times.

       Brits have been warned their bills could increase by as much as ￡150 annually.

       Ofgem’s relaxing of the cap would let energy companies raise bills of around 11 million households.

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       This would mean the households affected may have to pay an average of around ￡1,288 a year for their energy.

       Around 11 million households currently on default or standard variable tariffs who haven’t switched suppliers in the past year will likely be affected.

       A further four million with pre-payment meters will be burdened with a similar price rise.

       The plans will let energy companies increase bills for households on their default tariffs.

       Ofgem regulates energy prices in the UK, they first introduced an energy cap to protect households from unfair tariffs in early 2019.

       Most suppliers based energy prices on their default tariffs on the rate of the price cap.

       Ofgem adjusts the cap every six months according to how much the cost of electricity and gas is for suppliers.

       This year the cap is expected to rise after a huge rise in wholesale costs.

       From October, average annual bills will soar from ￡1,138 to approximately ￡1,288, or 13 percent.

       Concerns have been raised as these price rises will affect most of the country’s most vulnerable households as they are likely to be on default tariffs or pre-payment meters.

       Craig Mackinlay, Conservative MP for South Thanet, told The Times: “The main driver of this current price hike is broadly due to wholesale gas prices.

       “With a dash to uncosted net-zero, this rise will be the first of even more catastrophic rises to family fuel bills.”

       Jonathan Brearley, the Ofgem chief executive, justified the increase, writing: “When legitimate costs of supplying energy increase, this needs to be reflected in the price cap,”

       He added: “Without this, companies would be unable to continue to supply energy to their customers.”