Homeowners and businesses can expect to spend more on their bills after Ofgem increases its energy price cap.

From April 1^st, customers will see their outgoings soar by £693 a year if they pay by direct debit or £708 for pre-payment customers.

This massive increase is the result of a record rise in global gas prices recently, allowing energy providers to pass on their extra costs to consumers.

Chief executive of Ofgem Jonathan Brearley accepted this rise will be “extremely worrying for many people”, but reassured customers that it is “working to stabilise the market”.

MoneySavingExpert Martin Lewis issued advice to energy users reading the Mirror on how to limit their increased payment as much as possible.

He suggested taking a meter reading on March 31^st to tell the energy company the exact amount of electricity and gas had been used prior to the price cap increase, making sure this amount is charged at the lower rate.

Mr Lewis advised to keep paying direct debits, as this is cheaper than quarterly bills.

Lastly, he suggested avoiding fixed price deals as these are currently 40 per cent higher than the price cap, while the cost is unlikely to rise by more than 25 per cent when it is reviewed in six months’ time.

Another way to cut energy costs is by getting double-glazed windows from UKGG. These reduce the amount of heat lost, meaning customers do not have to turn their thermostat up as high and can save on heating bills.