ENERGY bills are set to rise by £149 on average from October following the announcement of a new price cap.

Industry regulator, OFGEM has increased the price cap by 10 per cent, meaning the average home will page £1,717 a year for gas and electricity from October.

Plaid Cymru Westminster leader, and Dwyfor Meirionnydd MP, Liz Saville Roberts said the rise was “worrying news”.

She said that “in this harsh context”, the Labour UK Government’s decision to scrap the Winter Fuel Payment of up to £300 for 10 million pensioners “puts the health and finances of millions of older people at risk.”

The new Labour UK government decided to stop winter fuel payments for those who are not in receipt of pension credits or other means tested benefits, which will see the number of pensioners receiving the payments of up to £300 fall from 11.4 million to 1.5 million.

Living in a cold home can worsen asthma and other respiratory illnesses and increase the risk of heart disease and cardiac events. It can also worsen musculoskeletal conditions such as arthritis.

Ms Saville Roberts MP said: “A typical household's energy bill will rise by £149 in October under the new Ofgem price cap, in yet more worrying news for households as we approach winter.

“In this harsh context, the Labour UK Government’s decision to scrap the Winter Fuel Payment of up to £300 for 10 million pensioners risks putting the health and finances of millions of older people at risk. This follows a painful reduction in support for disabled people when cost-of-living payments for those on benefits were cut in February this year.

“Labour holds the power to protect vulnerable households this winter. Plaid Cymru urges them to act now and ensure no pensioner is left to suffer in the cold. The UK Government must reconsider its decision to axe the Winter Fuel Payment for most pensioners.”

Wales’ most influential think-tank, the Bevan Foundation, echoed the concerns, warning that people will go cold this winter.

The rise in the price cap is the result of higher prices on the international energy market, Ofgem said, owing to increasing geopolitical tensions and extreme weather driving competition and demand for gas, which determines the price of wholesale electricity.

Bills will remain about £117 a year cheaper for a typical household than in October last year, but analysts say another rise in prices is likely in January.