The industry regulator today set the energy price cap at £1717 for the average customer, an increase of 10% or around £12 per month on average.

Ofgem said that the rise was largely due to higher wholesale gas prices and it urged bill-payers to “shop around” as there are fixed-rate deals on the market that could offer savings.

Citizens Advice Scotland (CAS) said that energy bills are still way too high for many households.

CAS energy spokesperson Matthew Lee said: “This announcement shows that we can’t become complacent about energy bills. Yes, the price cap is down compared to its peak in winter 2022-23 but today’s figure is around 10% higher than last quarter’s price cap.

“Energy bills remain far too high for many people to be able to afford, particularly the many who have had to go into debt to cover their energy costs since the price surge. Our data shows that the average energy debt that CAB clients present is around £2,600.

“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 of the past 18 months.

“Problems with energy bills don’t exist in isolation. Our data shows that people who struggle to pay their energy bills also have problems accessing food, debt and the social security system. This is having a devastating impact on people’s physical and mental wellbeing.

“The fact is that too many people are still struggling to pay these bills, and more targeted financial support like a social tariff are needed for the most vulnerable households.”

Andrew Bartlett, chief executive of Advice Direct Scotland, said: “The news that higher gas and electricity prices are on their way, just as the summer comes to an end and people start to turn their central heating back on, is an unwelcome reminder that the energy crisis is still far from over.

“For many Scottish households, the winter ahead will be extremely long and difficult, with no respite in the form of cheaper prices likely to arrive until spring 2025 at the earliest.

“To make matters worse, many are still struggling with the cost of living and are saddled with energy-related debts that they built up last winter and have been unable to pay off.

“For the past six months, 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. It is a real shame that so far, no action has been taken.”

Chief executive of Consumer Scotland Sam Ghibaldan added: “The rise in the price cap will compound affordability challenges for those who are already struggling to pay their bills and comes as we approach the coldest months of the year.

“There is a need for governments to design better targeted energy affordability support for consumers, particularly given current levels of debt and ongoing pressure on household budgets.

“This should be led by a comprehensive review of current energy affordability schemes to ensure consumers who are struggling with bills get the support they need.

“This also highlights the urgent need for energy market reforms to enable all consumers to access affordable, clean energy in the future.

“In addition there needs to be a renewed impetus on a range of additional measures to lower bills and keep homes warmer, including improved insulation.”

Ofgem chief executive Jonathan Brearley said: “We know that this rise in the price cap is going to be extremely difficult for many households. Anyone who is struggling to pay their bill should make sure they have access to all the benefits they are entitled to, particularly pension credit, and contact their energy company for further help and support.

“I’d also encourage people to shop around and consider fixing if there is a tariff that’s right for you - there are options available that could save you money, while also offering the security of a rate that won’t change for a fixed period.

“We are working with government, suppliers, charities and consumer groups to do everything we can to support customers, including longer term standing charge reform, and steps to tackle debt and affordability.

“Options such as changing how standing charges are paid and getting suppliers to offer more tariff choices and give customers more control are all on the table, but there are no silver bullets.

“Any change could leave some low-income households worse off, so it’s important we hear views on our proposals and continue working with the government to see what targeted support could help customers.

“Ultimately the price rise we are announcing today is driven by our reliance on a volatile global gas market that is too easily influenced by unforeseen international events and the actions of aggressive states. Building a homegrown renewable energy system is the key to lowering bills and creating a sustainable and secure market that works for customers.”

The levels for the period 1 January to 31 March 2025 will be published by 25 November 2024.