Ofgem Director General explains why household bills are rising by £35 a year

The energy price cap will rise by 2 per cent from October for a typical household in England, Scotland and Wales, regulator Ofgem revealed today.The increase means a household using a typical amount of gas and electricity will now pay £1,755 a year, which is a rise of £35 a year on the current rate.It will see bills go up 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.The price cap - a default tariff for those not on a fixed rate - sets a maximum rate per unit and standing charge that can be billed to customers for their energy use.