The energy firms hiking their bills after the price cap increase

Energy firms have begun hiking bills for customers after the regulator raised the energy price cap earlier this month.

The price cap, which sets upper limits on how much firms can charge customers on standard variable tariffs, was increased by £139 to £1,277 after wholesale gas prices soared.

EDF has announced it will raise bills by an average of 12.24pc, which will see its average annual cost go from around £1,138 to £1,277.

Meanwhile, SSE has announced similar changes, with its average annual cost rising from around £1,137 to £1,276, an increase of £140. Both changes will take place from 1 October.

Gareth Kloet of Go Compare Energy, the comparison site, said: “This isn’t an unexpected move and unfortunately won’t be the last increase we will see this autumn. 

“With both SSE and EDF increasing their prices to match the Ofgem price cap, it’s likely that we will see more of the same from the other providers yet to announce their updated prices.”

The price cap was introduced in 2019 in response to widespread accusations of overcharging in the energy sector, with estimates it would save households between £75 and £100. 

It is now at its highest point since it was introduced. The latest rise will mean around 11 million households will see their bills increase.