Household energy bills will rise by 2 per cent in October after Ofgem announced its latest price cap.
Ofgem, which sets the limit on what energy companies can charge customers, confirmed the new cap on Wednesday.
The increase is higher than expected and is forecast to cost households £1,755 a year - an increase of £35.
It will see bills increase by around £2.93 a month for the average household, leaving a home on a default tariff paying £102 for what currently costs £100 per month.
READ MORE: What is the energy price cap?
Latest figures show more than a third of customers (37 per cent) are now on fixed tariffs, which means they are protected from the upcoming rise.
Tim Jarvis, director general of markets at Ofgem, said: "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.
"While today's change is below inflation, we know customers might not be feeling it in their pockets.
"There are things you can do though - consider a fixed tariff as this could save more than £200 against the new cap.
"Paying by direct debit or smart pay-as-you-go could also save you money.
"In the longer term, we will continue to see fluctuations in our energy prices until we are insulated from volatile international gas markets.
"That's why we continue to work with Government and the sector to diversify our energy mix to reduce the reliance on markets we do not control."
A Labour Party spokesperson said: "Energy bills soared under the Conservatives because they tied our country to the fossil fuel rollercoaster and working people are still paying the price.
"From banning onshore wind to failing to deliver new nuclear, their reckless decisions left Britain exposed to wholesale gas prices that are still 75 per cent higher than before Putin's invasion of Ukraine.
"That's why Nigel Farage's unpatriotic war on clean energy would be a total disaster for families, businesses and our economy.
"His destructive plans would push bills higher, kill nearly a million jobs and scrap billions of pounds of vital investment across the country that will strengthen our energy security.
"This Labour Government's plan for change is protecting consumers with three million more families getting £150 off their bills through the warm home discount, a total of six million in all, as we continue to invest in clean homegrown power to bring energy bills down for good."
Ofgem changes the price cap for households every three months, largely based on the cost of energy on wholesale markets.
The price cap was introduced by the government in January 2019 and sets a maximum price that energy suppliers can charge consumers in England, Scotland and Wales for each kilowatt hour of energy they use.
It does not limit total bills because householders still pay for the amount of energy they consume.
A Department for Energy Security and Net Zero spokeswoman said: “The only way to bring down energy bills for good is with the Government’s clean energy superpower mission, which will get the UK off the rollercoaster of fossil fuel prices and on to clean, homegrown power that we control.
“We are taking urgent action to support families this winter – in addition to expanding the £150 Warm Home Discount to 2.7 million more households, we are strengthening customer protections, including by giving people quicker and easier access to automatic compensation when their suppliers let them down.”
