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A drop in domestic gas and electricity prices has now taken effect, but costs are expected to rise 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.

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

But forecasters expect it to rise again in the run-up to winter, more than reversing the latest drop.

Leading consultancy 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.

"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," said Adam Scorer, chief executive of charity National Energy Action.

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