MILLIONS of households could see their energy bills rise by around £109 a year from April if they remain on price-capped tariffs, Uswitch has warned.

The comparison website said that the energy costs of 26 million households on default tariffs would increase by an average of 6 per cent, reaching £1,847 in the new fiscal year, with a further £35 rise predicted in July.

The April 1 energy price cap is now predicted to increase by more than previously expected after wholesale prices hit a 15-month high.