OFGEM is set to announce how much energy bills will increase from the April in an announcement today.

The energy regulator is responsible for the energy price cap which limits how much providers can charge customers on their energy bills.

Ofgem said an announcement will be made at 11am on Thursday morning with the decision affecting 22 million households across the UK.

The current price cap is £1,277 and is reviewed twice a year with the latest rise set to be around 50%.

It has led to many bill payers wondering whether they should move off their price cap and get a fixed price on new deals available.

What is the energy price cap?

What is a fixed rate energy tariff?

A ‘fixed rate’ means that your unit price for gas and electricity does not change for the duration of the plan you sign up to with your energy provider.

Opting for a fixed rate deal offers you more security and will often be some of the cheapest deals available.

Entering a fixed term deal will often mean a longer plan and you will often need to pay fees to exit the deal early.

What is a variable energy tariff?

A ‘variable rate’ is a more flexible approach to paying your energy supplier.

There is often no fees to get out of a variable rate plan however your per-unit gas and electricity costs can vary from month to month at the direction of your energy supplier.

Martin Lewis on whether you should fix your energy tariff now

Brits have turned to cash-saving guru Martin Lewis for advice in wake of the new energy price cap.

In a recent Money Saving Expert weekly newsletter he explained whether cunsumers should move off the cap and fix their bill with deals.

He said: "After number-crunching, for most, it's still a 'no', but for the first time in many months fixing may be worth it for a few."

"If you're offered a fix that's no more than 40% costlier than your current price-capped tariff, it's worth considering - especially if you value budgeting certainty"

He added: "If you're offered one, do the numbers to see what percentage the increase is.”