The energy price cap is expected to rise by 50% today.
Ofgem is expected to announce that the energy price cap will rise, meaning the average bill could hit £1,915.
Chancellor Rishi Sunak will announce support to ease the pressure on millions of households facing soaring energy bills.
But what is the current energy price cap, and why is it set to rise?
Millions of households are going to face an increase of more than £600 a year in energy bills.
— Good Morning Britain (@GMB) February 3, 2022
Today is the day the regulator Ofgem announces a big rise in the price cap.@kategarraway explains the energy price cap. pic.twitter.com/4b1nwaxDU1
What is the energy price cap?
Regulator Ofgem introduced the price cap in 2019. It was designed to prevent millions of households being ripped off.
Currently the cap is set at £1,277 per year on standard variable and default tariffs.
The price cap is a limit on the maximum amount suppliers can charge for each unit of gas and electricity use.
But if you use more energy, you will pay more, and if you use less you will pay less.
Why is the energy price cap set to rise?
Ofgem is expected to announce that the price cap will rise by 50% today, taking the average bill for a UK household to around £1,900.
The rise will come into force from April 1, when the price cap on energy bills is updated for the next six months.
The rise is caused by soaring wholesale gas prices.
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