Regulator Ofgem announced on Tuesday that its energy price cap would go up by 6% from 1 April, taking the typical gas and electricity bill to £1,849 per year, from £1,738.
Industry onlookers had expected the price cap to rise by 5%.
Ofgem said a recent spike in wholesale prices was the main driver of the price rise, accounting for around 78% of the total increase, while a small increase in policy costs and associated inflationary pressures made up a further 22%.
Ofgem chief executive Jonathan Brearley 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."
It comes as the government said on Tuesday that it was looking to expand its financial support for energy bills.
Ministers said next winter one in five families in Britain would get financial help.
Around 2.7 million extra households, including nearly one million with children, would be eligible for the £150 Warm Home Discount next winter, the government added.
This would bring the total number of recipient homes to an estimated 6.1 million.
Responding to the price cap rise, Simon Francis, coordinator of campaign group the End Fuel Poverty Coalition, called for billions more in support for vulnerable customers.
He said it is "crucial to provide support for vulnerable households struggling with energy costs now", calling for £13.2 billion of support at the Government’s upcoming spending review.
"The big question will be how do we pay for these improvements in support. Both Warm Home Discounts and debt relief are traditionally funded through our energy bills.
"Yet the energy industry makes billions of pounds in profit every year and it beggars belief that Ofgem is increasing the profit allowance for suppliers in the current climate.
"For now, the advice for households is to make the most of existing energy efficiency schemes and if customers do shop around for a lower energy bill, they must use their own energy usage on price comparison sites."
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