Nicola Sturgeon has called for the energy price cap to be frozen after it was announced household bills will rise by 80 per cent later this year.
The First Minister took to social media following Ofgem's decision to increase the cap from £1,971-a-year to £3,549 on October 1 to say the rise "must be cancelled".
Ofgem's chief executive Jonathan Brearley warned of the hardship energy prices will cause this winter and urged the incoming prime minister and Cabinet "to provide an additional and urgent response to continued surging energy prices".
The regulator said the increase reflected the continued rise in global wholesale gas prices, which began to surge as the world unlocked from the Covid pandemic and had been driven even higher to record levels by Russia slowly switching off gas supplies to Europe.
Sturgeon tweeted: "This is simply unaffordable for millions. It cannot be allowed to go ahead. This rise must be cancelled, with the UK gov and energy companies then agreeing a package to fund the cost of a freeze over a longer period, coupled with fundamental reform of the energy market."
It's feared the rise in energy prices will push millions across the country into fuel poverty.
Scottish Labour leader Anas Sarwar said the Scottish and UK Governments have a "moral duty" to fix the "national emergency".
He added: "This eye-watering price hike risks plunging millions of people into fuel poverty. This is a national emergency and our governments have a moral duty to act.
"While energy giants are posting record profits, people are facing soaring bills. That’s why we need a windfall tax to put money in the pockets of consumers. Across the UK we need an energy price freeze now to help millions of households.
"And here in Scotland we need an emergency cost of living act to freeze rents, cut the cost of commuting and support businesses."
While, Scotland's Energy Secretary Michael Matheson said the increase is "unsustainable" and warned it would push millions into fuel poverty.
He added: "Today's price cap announcement and increase imposes a burden that customers simply cannot be expected to carry. The only acceptable course of action now is for the UK Government, who have the necessary policy levers and borrowing powers at their disposal, to take immediate steps to cancel the increase for all households.
"No single government, company or organisation can solve this crisis alone. It requires a collective response commensurate to the situation.
"We will continue to work with our partners, energy companies and stakeholders to do everything we can to help the people of Scotland through this deeply unsettling time.
"We will also continue to press the UK Government to reform the energy market to prevent this situation occurring again in the future."
Matheson said the Scottish Government is treating the situation as a "public emergency" and has prepared a £1.2 million package to enable the immediate expansion of energy advice services.
The £2 million Social Housing Fuel Support Fund, administered by the Scottish Federation of Housing Associations, will open on Monday to provide help to the most vulnerable households.
What is the new energy price cap?
Ofgem, the industry regulator, announced earlier today that bills would increase by 80 per cent on October 1. The current cap is £1,971-per-year however that is due to rise to £3,549.
Around 24 million households across the United Kingdom will be hit by the rise which is due to last until December 31 when a new cap will be introduced.
When is the next energy cap announcement?
The next official announcement by Ofgem is set to take place on November 24, 2022. It will then come into effect on January 1, 2023.
According to Cornwall Insight the cap could rise to £4,650-a-year at the start of next year.
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