MILLIONS of households will now have to fork out at least £139 a year more for energy and gas after a new price cap came into effect today. 

The regulator Ofgem announced in the summer that the cap would go up after a rise in wholesale gas prices. 

However, the new level of the cap was determined before an unprecedented hike in global gas prices, which has triggered the collapse of nine small energy companies in this country. 

The current raising of the cap, which limits how much providers can raise prices, represents a 12 per cent increase in energy prices and is the biggest jump since the backstop was introduced in January 2019.

Citizens Advice said this week that consumers who are moved to a new energy firm after their supplier goes out of business stand to pay almost £30 a month more just as the new price cap comes into effect.

Those on standard tariffs, with typical household levels of energy use, will see bills go up by £139 to £1,277 a year. 

Pre-payment meter customers – typically those on the lowest incomes – with average energy use will see a £153 increase, from £1,156 to £1,309.

Charities have also warned that the hike in energy prices will push more people into fuel poverty at a time when Covid-related support is being withdrawn. 

National Energy Action chief executive Adam Scorer warned: “Without a wider package of support – keeping universal credit uplifts and more rebates to protect those on the lowest incomes from spiralling energy prices – vulnerable people are still at dire risk of premature death this winter.”