Average Lancaster household could spend more than £3,500 a year on energy from October

Ofgem, the UK's energy regulator, announced last week that it will increase the energy price cap from October 1.

It means the maximum price a supplier can charge for electricity will rise on average from 28p per kilowatt-hour (kWh) to 52p per kWh, while gas will increase from 7p to 15p per kWh.

Including standing charges, it means the average household's energy costs on a variable tariff in the UK will increase by 80% – from £1,971 to £3,549 per year.

Energy charity National Energy Action said millions now face a "big freeze" and urged the Government to act immediately to provide greater support ahead of the winter.

Energy usage varies throughout the UK – we've studied local figures to work out how much an average household might pay in your area.

Department for Business, Energy and Industrial Strategy figures show the average household in Lancaster used a median amount of around 2,834.55 kWh of electricity and 12,080.97 kWh of gas in 2020.

A kWh is the amount of energy required to provide one kilowatt of power for one hour and the median – the middle number in a series – is used to ensure the figures are not skewed by extreme highs or lows.

One kWh would run an average oven for around 30 minutes.

At current prices, it means the average household on a variable tariff in the area would be paying around £1,900 per year to heat and fuel their home.

But when the price cap increases in October, this will soar to approximately £3,560.

Households on a fixed tariff will pay for energy at their current rate until the term comes to an end.

Adam Scorer, chief executive of the NEA, said the scale of harm caused by soaring prices needs to sink in and that warm homes will be a "pipe dream" for many this winter as they wrestle with higher tariffs.

"Without bold action to support the most vulnerable and those on the lowest incomes, this will effectively prise their fingers from the cliff edge and push them over the precipice," Mr Scorer added.

Energy consultancy firm Cornwall Insights expects the price cap to rise dramatically again in January and April, with yearly energy costs reaching £5,400 and then £6,600 for the average UK household.

It would mean annual domestic fuel costs will have more than tripled in one year.