A drop in the energy price cap has taken place today (Monday, July 1) but the relief is set to be temporary as it is expected to go up again in October.

Regulator Ofgem's new price cap for England, Wales and Scotland came into force on Monday, meaning a typical household's energy bill will fall by £122 a year.

This brings down the bill for a household using a typical amount of gas and electricity to £1,568 a year, which is the lowest for two years.

Despite this, the prices are anticipated to go up in the autumn, which will more than reverse the latest decrease.

BBC News reports that Cornwall Insight predicts that a typical household's annual bill will be back up to £1,723 in October, a £155, or 10%, increase from now.

Adam Scorer, chief executive of charity National Energy Action, said: "Modest falls in summer look set to be wiped out by bigger rises in autumn when people will need to put the heating back on.

"The cost of energy remains an unaffordable luxury that many of the poorest simply cannot afford."

Should households fix their energy deal?

Consumer groups say there is an alternative to the price cap, pointing to a growing number of fixed-rate deals on the market following a dearth of competition in recent years.

Speaking to Sky News, Emily Seymour, the editor of Which? Energy, said: "With the price cap predicted to rise again in October, many consumers will also be wondering whether to fix their energy deal.

"There's no 'one size fits all' approach but the first step is to compare your monthly payments on the price cap to any fixed deals to see what the best option is for you.

"As a rule of thumb, if you want to fix, we'd recommend looking for deals as close to the July price cap as possible, not longer than 12 months and without significant exit fees."

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Energy bills at the moment are considerably lower than the peak after Russia's invasion of Ukraine, when the government stepped in to limit bill rises.

Ofgem is currently reviewing the way the price cap is calculated, including sifting through a host of responses to a consultation on standing charges.

Experts say it is a good idea to take a meter reading now, to ensure billpayers are charged at the correct rate.