Energy prices will rise by £693 a year for millions of households after regulator Ofgem raised the bill price cap to £1,971.
Adding to concerns over the cost of living crisis, consumer experts are warning that the cap could rise again in October.
New energy bill costs have confused bill payers who are being quoted for bills above the ceiling price. Money Saving Expert founder Martin Lewis explains why some people will pay more.
Martin Lewis advises ITV This Morning viewers
Last week, Mr Lewis answered questions from viewers of This Morning, explaining that the cap did not relate to invoice prices as a whole, but to unit prices.
Speaking alongside hosts Holly Willoughby and Phillip Schofield, he said: “What you hear about is typical usage of what someone would pay for, but if you use more you pay more, if you use less , you pay less.
“There is no hard cap on the total amount of energy you can pay for. If you have a huge house and you use huge sums, you can pay £10,000 or £20,000 a year.
He continued: “It’s a cap on the cost per unit, and it actually varies from region to region and the numbers you’ll have heard [on the price cap], are just for someone on typical use. It is the unit rates that are increasing and [the price cap] is just an easy way to explain it.”
The consumer rights champion will host a special on the cost of living crisis from his Martin Lewis Money Show on Tuesday.