Around 11 million households face a near £100 energy price hike from April.
Industry regulator Ofgem was slammed after yesterday announcing a jump in the limit suppliers can charge customers on standard tariffs.
A similar cap for four million already hard-up households who have prepayment meters will leap by an average of £87 a year.
Ofgem said the increases were justified by higher wholesale energy costs.
Allowing suppliers to up the standard tariffs limit by around £96 from April 1 will take the average bill to £1,138 a year – wiping out a cap decrease last October.
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The hike includes a sum for suppliers to recoup losses for customers unable to pay bills during the coronavirus crisis.
Jonathan Brearley, chief executive of Ofgem, said: “We have carefully scrutinised these changes to ensure customers only pay a fair price.”
Martin Lewis, founder of MoneySavingExpert.com, said: “It will hopefully shock people into action.”
Alistair Cromwell, acting chief executive of Citizens Advice, described it as “a heavy blow”. Adam Scorer, head of charity National Energy Action, said: “People on the lowest incomes are always hit hardest.”
Peter Earl, head of energy at Comparethemarket.com, said: “It calls into question the point of a cap.”
Ofgem insisted limits will still save households £1billion compared to if the cap did not exist.
Energy UK, which represents suppliers, welcomed the increase.
