The energy regulator said a recent spike in wholesale prices is the main driver, accounting for around 78% of the total increase. A small increase in policy costs and associated inflationary pressures make up a further 22%.

The price cap – which sets a maximum rate per unit and standing charge that can be billed to customers for their energy use – will rise by £111 for an average household per year, or around £9.25 a month, over the three-month period of the price cap.

For an average household paying by Direct Debit for dual fuel this equates to £1,849 per year. This is 9.4% (£159) higher than this time last year (£1,690) but £531 (22%) lower than at the height of the energy crisis at the start of 2023, when the Energy Price Guarantee was in place.

Today’s rise is a 6.4% increase on the current level and will see the average bill rise by £111 per year. Forecasts suggest the price cap will fall in July, before rising again in October.

The new price cap is £711 more than the amount that households were being charged before the energy crisis hit in the autumn of 2021, an increase of 62%.

Citizens Advice Scotland described the increase as another reminder that the energy market is “broken” and “urgently needs to be fixed”.  

CAS director of impact David Hilferty said: “The blunt fact is that energy bills remain far too high for many people to be able to afford. Further hikes now will make a terrible situation even worse.   

“Today’s announcement must be seen in the context of peoples’ incomes and how badly households have been battered by the cost-of-living crisis. Energy bills don’t exist in isolation. Our evidence shows that people who struggle to pay their energy bills also have problems accessing food, and their social security entitlements. This is having a devastating impact on peoples’ physical and mental wellbeing. 

“Earlier this month we called on Ofgem to introduce a robust Energy Debt Relief Scheme to help mitigate the impact of this crisis on those who are worst affected. We repeat that call today, and we also repeat our call for all energy companies to introduce a social tariff to help those on the lowest incomes.” 

The average energy debt held by people coming to the Scottish CAB network about the issue is £2,500. For people living in rural areas, the average energy debt is just over £3,100. 

Consumer Scotland director of policy and advocacy Douglas White added: “Energy costs are already historically high and prices will rise further in April – the third increase in a row.

“This latest rise comes after another challenging winter for consumers, particularly those with higher energy needs including disabled people and those with health conditions.

“One of the legacies of the past three years of high bills has been a growth of energy debt and arrears in the GB domestic market which now exceeds £3.8bn – a record high – and bill increases will impact further on levels of debt.

“Bill increases and unsustainable levels of debt underline the urgent need for reform so that affordability support reaches those who need it.”

Advice Direct Scotland said persistently high costs are “heaping more debt onto people who cannot afford it”.

Conor Forbes, policy director at Advice Direct Scotland, said: “Over the winter, thousands of people across Scotland who were already struggling have been racking up energy debts due to the cost of their heating bills.

“The news that energy is going to get even more expensive in April will come as a real shock and will have the result of heaping more debt onto people who cannot afford it.

“People are paying hundreds of pounds per year more than they were before the energy crisis hit, and this situation simply cannot continue.

“This is why we have been calling for a UK-wide social energy tariff, which would go some way to fixing the country’s broken energy market and lifting people out of fuel poverty.

“Our view is that the most vulnerable households should automatically be placed on the cheapest energy deal through an opt-out system, so they do not have to take any action to benefit.

“For now, people can take practical action by examining their bills, finding out how much they are paying and checking if there are cheaper options available with other suppliers.

“Taking regular meter readings and checking the level of your direct debit are as important as ever. If you have a smart meter, ensure that it is working.”

Jonathan Brearley, CEO of Ofgem, 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.”