Energy bills for the average UK household are on course to surge to a devastating £4,266 a year in January, experts have warned.
That will come after a rise to more than £3,500 in October as the cost-of-living crisis deepens throughout this year and into 2023, according to figures from Cornwall Insight, an energy consultancy.
Ofgem is set to put the price cap at £4,266 for the average household in the three months from the beginning of January.
Cornwall Insight said that this was around £650 more than its previous forecast, thanks to large rises in the wholesale cost of gas.
It comes as Ofgem last week announced changes to how it will calculate the price cap on energy bills going forward.
“While our price cap forecasts have been steadily rising since the summer 2022 cap was set in April, an increase of over £650 in the January predictions comes as a fresh shock,” said Craig Lowrey, principal consultant at Cornwall Insight.
“The cost-of-living crisis was already top of the news agenda as more and more people face fuel poverty – this will only compound the concerns.
“Many may consider the changes made by Ofgem to the hedging formula, which have contributed to the predicted increase in bills, to be unwise at a time when so many people are already struggling.”
