Ofgem has confirmed it will update its price cap four times a year.
The energy regulator currently updates its price cap twice a year - in April and October. But now, the regulators will review the cap every January, April, July and October.
Ofgem says the idea of reviewing its price cap more often is so energy companies can provide more accurate pricing for customers. It means millions of households who are on a standard variable tariff will see more frequent changes to their energy bills.
READ MORE: Martin Lewis warns of further energy price hikes in January
It comes as energy bills continue to spiral, with analysts predicting the October price cap could hit £3,359. The regulator will confirm how much its October price cap will rise by on August 26.
This price cap was last adjusted in April this year, rising from £1,277 to £1,971 per year on average. Money Saving Expert Martin Lewis has previously warned that Britain will face a dire winter as the prices continue to spiral.
Jonathan Brearley, CEO of Ofgem, also acknowledged that current energy price rises are "deeply worrying". He added: "Today’s changes ensure the price cap does its job, making sure customers are only paying the real cost of their energy, but also, that it can adapt to the current volatile market."
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