Energy bills are set to rise by 6.4% in April after regulator Ofgem announced a higher than expected lift in the price cap.
Analysts had predicted a 5% rise in prices, primarily because of increased wholesale costs for suppliers, but the 6.4% change announced this morning will see a typical annual bill rise by £111.
The change to the price cap, which limits the amount energy suppliers can charge customers per unit and impacts 22million homes across Scotland, England and Wales, will come into force in April.
The latest rise, the BBC reports, means prices will have risen 9.4%, an average of £159 annually, in the space of a year.
Analysts say a combination of colder weather and a drop in gas storage levels across Europe have pushed up prices.
Jonathan Brearley, Ofgem's chief executive, said that prices remained a huge challenge for many people and accepted another increase was "unwelcome".
Mr Brearley said customers, where possible, should consider "switching or fixing tariffs now" to try to lower costs and "provide certainty over coming payments".
"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," he added.
About four million households have done so in recent months, according to Ofgem figures.