Photo Courtesy Guardian

Ofgem has confirmed that the energy price cap will be updated quarterly, rather than every six months, as it warned that customers face a “very challenging winter ahead”.

The energy regulator said reviewing the price cap for household bills every three months would allow it to “adjust much more quickly” to volatility in the market.

Ofgem raised the cap on the average dual-fuel tariff by 54% to £1,971 from April, the biggest increase since the cap was introduced in 2019.

Consumers have been warned they face another big hiketo just under £3,500 when the next cap – which comes into effect in October - is announced later this month.

Analysts at Cornwall Insight have predicted the price cap is on track to rise to £3,615 a year from January, piling further pressure on households as the cost of living crisis intensifies. By Guardian staff and agency