Regulator Ofgem is due to announce early next month how it will adjust the cap from April to reflect changes in the costs of supplying gas and electricity

A potentially “significant” increase to the energy price cap is likely to be announced within weeks despite the recent drop in wholesale costs, the regulator has confirmed.

The cap came into effect on January 1 and forced big suppliers to cut prices for 11 million households on standard tariffs by an average of £76 a year.

Ofgem is due to announce early next month how it will adjust the cap from April to reflect changes in the costs of supplying gas and electricity.

Although wholesale prices have fallen sharply over the past few months, Dermot Nolan, chief executive of Ofgem, confirmed that the way the cap was calculated meant an increase was still on the cards. “Wholesale costs have risen significantly over the past year.