Energy regulator Ofgem has suggested changing the energy bill price cap every three months as wholesale prices continue to surge.

Currently the cap is reviewed every six months from October.

Ofgem says this shift will help ease the ongoing cost of living crunch as consumers will be able to benefit from lower prices sooner when energy costs begin to fall.

UK households are currently set to be given a £200 loan in October to deal with energy bills that are due to rise by around £700 next month. The loan will be paid back in mandatory instalments over a five-year period.

Partly fuelled by the war in Ukraine and post-pandemic surges in demand, climbing wholesale energy prices have resulted in record prices and the folding of over two dozen UK suppliers.

From April the energy price cap jumped by 54 per cent and is set to jump again in October.