Energy bills to rise by more than expected ahead of winter

1 hour agoKevin PeacheyCost of living correspondent, BBC NewsGetty ImagesGas and electricity prices will rise by 2% for millions of households under the latest cap announced by energy regulator Ofgem.The increase, which is slightly more than analysts expected, means a household using a typical amount of energy will pay £1,755 a year, up £35 a year on the current cap.The increase will kick in at the start of October, which campaigners say will mean another winter of relatively high energy bills.Ofgem’s cap sets the maximum price that can be charged for each unit of gas and electricity for millions of households in England, Scotland and Wales.Individual households can calculate their estimated specific change by adding £2 onto every £100 they spend at the moment on energy each year.The increase comes as families are also facing rises in other basic costs. The British Retail Consortium said thatfood costs were rising at their fastest rate since the February of last year, with the price of chocolate, butter and eggs soaring.The energy cap sets the maximum price for each unit, but not the total bill which depends on how much energy you use.The change comes into force at the start of October and lasts for three months.Ofgem changes the cap, largely based on the cost of energy on wholesale markets.However, the rise in bills this time is partly the result of the higher cost of transporting energy and extra support measures for consumers, previously announced by the government and in place this winter.Anyone on means-tested benefits willautomatically receive the £150 Warm Home Discounton their bills. Some previously did not qualify owing to the size of their property, but that condition will be scrapped.All billpayers will chip in to fund this extra support, mainly through higher standing charges – the fixed cost of connecting to the supply. It means standing charges will typically rise by 4% for electricity and 14% for gas, with the latter rising from 29p per kilowatt hour …