Experts have warned that energy bills for the average UK household are likely to soar to a devastating £4,266 a year in January.
This will come after a rise of more than £3,500 in October as the cost of living crisis worsens later this year and into 2023, according to data from energy consultancy Cornwall Insight.
Ofgem will set the price range for the average family at £4,266 for the three months from January.
This was around £650 higher than its previous forecast due to a sharp increase in wholesale gas costs, according to Cornwall Insight. It expects further gains in April next year before prices eventually fall slightly to £3,810 from July and £3,781 from October.
It comes as Offgame last week announced changes to the way it calculates price caps on energy bills.
Craig Lowrey, Principal Adviser at Cornwall Insight said: “While our price cap forecasts have risen steadily since the 2022 summer limit was set in April, the rise of more than £650 in January forecasts comes as a fresh shock. Is.”
“The cost of living crisis has already been high on the news agenda as fuel poverty hits more people – this will only add to concern.
“Many may find the changes Ogame made to the hedging formula, which have contributed to the projected increase in bills, unwise at a time when so many people are already struggling.”
Offgame announced earlier this year that it would calculate the cap every three months instead of every six months after a number of suppliers made mistakes by not being allowed to pass rising costs on to customers. .
Cornwall said that while a change in the off-game hedging formula contributed to the increase in bills, the increase was due to a rise in wholesale energy prices.
dr Lowrey said the government should step in and take action to protect homes from rising costs.
So far the government has promised £400 per household and extra help for the most vulnerable, but campaigners say it’s far less than needed.
“If £400 wasn’t enough to spoil the effect of our previous forecast, it certainly isn’t enough now,” Mr Lore said.
He said the current price range does not control consumer prices and hurts suppliers’ business model, and asked if it was fit for purpose.
“The government should roll out more support in the first two quarters of 2023, a number one priority.”
Boris Johnson has dismissed calls for a living emergency budget, while two men who are set to succeed him as prime minister have declined to say what extra help is available for families in need. Will be
Liz Truss has said she supports tax cuts on “handouts”, while Rishi Sunak has hinted that more aid is needed without explaining what could happen.
Conservative former chief whip Mark Harper, Sunak’s supporter in the leadership contest, said the “key question” for the country’s next prime minister is how to get people through the winter, as he insisted the VC’s plan was “the right thing to do.” is one”.
Mr Harper told LBC: “I think the key question that will be faced by the person who is elected Prime Minister on September 6 is how are we going to get people through the winter.
“There is a big difference between the two candidates here. So Sage is saying we now expect energy prices to be higher than they expected back in May when he unveiled the big package of support that people are currently being given. It is given to people who need more, including direct help.
“Her opponent (Liz Truss) says she’s going to cut Social Security. There’s a huge tax cut, PM says £1,810 gives pensioners nothing and just £59 full-time gives someone working for a national subsistence and I don’t think it will cut that.”