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A further four million households with pre-payment meters could see their bills jump by £87 to £1,156.

It is on top of an extra £23 rise that energy suppliers have been allowed to charge customers for bad debt.

The price cap is a cap on a unit of gas and electricity, with standing charges taken into account. It is not a cap on overall energy bills, which will still rise or fall in line with energy consumption.

The £1,138 per year level of the cap is based on a household with typical consumption on a dual electricity and gas bill paying by direct debit.

Customers struggling to pay may be eligible for schemes such as payment breaks or suspending credit meter disconnections.

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The latest increase more than wipes out the gains that consumers made in October, when the price cap dropped by £84 to a record low since the policy was introduced in January 2019.

When the rise was announced, Ofgem chief executive Jonathan Brearley said: ‘Energy bill increases are never welcome, especially as many households are struggling with the impact of the pandemic.

‘We have carefully scrutinised these changes to ensure that customers only pay a fair price for their energy.

‘The price cap offers a safety net against poor pricing practices, saving customers up to £100 a year, but if they want to avoid the increase in April they should shop around for a cheaper deal.’

Ofgem reviews and changes the price cap once every six months.

Speaking to the BBC in February, Mr Brearley argued that it would be better to make a change now when the country is heading into the summer, a time when energy usage is lower, than in October, ahead of winter.

Citizens Advice acting chief executive Alistair Cromwell said: ‘With the rise in the energy price cap, many will have to pay more and rightly expect a decent service. Suppliers must step up to give their customers what they deserve.

‘Everyone should consider whether they are getting value for money from their supplier – paying more doesn’t always mean you will receive a better service.

‘Don’t put up with it if it’s not good enough. Shop around if you can

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