Energy bills to rise on average £60 a year

Energy prices for millions of households will rise to the highest level for three years, under regulator Ofgem's price cap.

Ofgem said the price cap will increase by 3.6% from October compared with the current level, with a household using a typical amount of gas and electricity paying £60 a year more.

Ofgem's Director General of Markets Neil Kenward says the regulator can not rule out prices could rise further in the future.