Energy bills will rise by more than expected in April, as Ofgem announced a 6.4 per cent increase to the energy price cap.

The increase means that a typical household in England, Scotland and Wales will now pay £1,849 on average for energy, up from £1,738 under the current price cap.

Energy regulator Ofgem changes the price cap for households every three months, largely based on the cost of energy on wholesale markets.

The cap does not set the maximum a household will pay for their energy but limits the amount providers can charge them per unit of gas or electricity, so those who use more energy will pay more.

As recently as last week, energy consultancy group Cornwall Insights predicted that the price cap would increase by 5 per cent.

Ofgem said a recent spike in wholesale prices was the main driver of the price rise, accounting for around 78% of the total increase, while a small increase in policy costs and associated inflationary pressures made up a further 22%.

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.

“If anyone is worried about paying their bills, I would urge them to reach out to their supplier to make sure they’re getting all the help they can. Where possible, switching or fixing tariffs now could also help to bring costs down and provide certainty over coming payments.”

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Responding to another rise in the energy price cap, Simon Francis, coordinator of campaign group the End Fuel Poverty Coalition, called for billions more in support for vulnerable customers.

He said it is “crucial to provide support for vulnerable households struggling with energy costs now”, calling for £13.2 billion of support at the Government’s upcoming spending review.

“The big question will be how do we pay for these improvements in support. Both Warm Home Discounts and debt relief are traditionally funded through our energy bills.

“Yet the energy industry makes billions of pounds in profit every year and it beggars belief that Ofgem is increasing the profit allowance for suppliers in the current climate.

“For now, the advice for households is to make the most of existing energy efficiency schemes and if customers do shop around for a lower energy bill, they must use their own energy usage on price comparison sites.”