Britain's second largest energy firm SSE has announced it will increase tariffs by an average of nine percent in a move affecting around five million electricity customers and 3.4 million gas customers.
The company will introduce the bill hike on October 15 and said it comes in response to energy price increases in wholesale markets, as well as rising costs of using the National Grid network.
Ian Marchant, the chief executive of SSE, said the company was facing "upward pressure on the costs" it incurs which is why prices had to rise.
SSE said the rise will add another £8.53 a month on to the typical monthly direct debit, dual fuel customer - taking the average annual bill to £1,274.
The UK's second largest energy firm, formerly known as Scottish & Southern Energy, said it will cap bills following the October price rise until at least the second half of 2013.
Business Editor Laura Kuenssberg has the full report: