Energy prices will rise by a higher than expected average of £111 a year (6.4%) in April following the regulator new cap.

It will take the typical dual fuel bill to £1,849 a year, from £1,738.

The cap, which puts a limit on the amount suppliers can charge for each unit of energy, affects the bills of 26 million homes in Scotland, England and Wales.

Energy analysts say rising wholesale costs and inflation are behind the latest price hike, the third consecutive increase in the quarterly cap announced by Ofgem. They had forecast a 5% rise in prices.

Government opposition parties accuse ministers of failing to fulfil promises to mitigate the price of energy.

However, while the price cap will go up, most people will pay less to their energy suppliers in the spring and summer months due to lower usage during the warmer months.

Ofgem chief executive Jonathan Brearley said: “We know that no price rise is ever welcome, and that the cost of energy remains a huge challenge for many households. But our reliance on international gas markets leads to volatile wholesale prices, and continues to drive up bills, which is why it’s more important than ever that we’re driving forward investment in a cleaner, homegrown system.

“Energy debts that began during the energy crisis have reached record levels and without intervention will continue to grow. This puts families under huge stress and increases costs for all customers. We’re developing plans that could give households with unmanageable debt the clean slate they need to move forward.

“We welcome the Government’s support for these plans, and their plans to expand the Warm Home Discount, which will also offer financial help to nearly three million more households that need it most.

Bills are about 50% higher than pre-Covid levels, but remain below the peak reached in 2022 when Russia’s full-scale invasion of Ukraine caused energy prices to spike.

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