Consultants warn the price cap could rise to £4,700 in April 2023 (Image: Gareth Fuller / PA)
Already struggling Brits face paying energy bills of £400 a month from next year as the peak price is set to rise even further.
It is feared that the annual limit set by regulators could rise to a terrifying £4,700 by April next year.
This is the equivalent of £391 a month and will only add to the pain many struggling households are suffering.
Annual family expenses, including energy, mortgage payments and food bills, could rise by £6,000 in December compared to last year due to rampant inflation.
Energy consultancy Auxilione predicted the price cap on energy bills could hit £3,687 in October, almost double today’s record levels.
It is believed to be the worst forecast yet for the 24 million households whose rates are governed by the cap, with further rises expected in 2023.
Auxilione added that the limit could reach around £4,400 in January, although he said he was not sure.
Experts have issued advice on how to keep your home warm ahead of a painful winter (Image: Steve Parsons/PA)
The consultancy said it was revising its figures due to changes to price cap rules made by industry regulator Ofgem.
He added: “We’re releasing today’s view with a caveat that we’ll need to re-do our analysis this week to ‘double-check’ that the outputs are correct. Make sure you’re seated before reading on.
If it is true that the price could rise to £4,700 in April, it would mean a peak price four times higher than before the gas price crisis in 2021.
The drops won’t happen until July, when the price cap may drop to £4,000. But that would still leave it at double current levels.
Auxilione said: “Ofgem released its final models on Thursday, including some changes to quotas within the cap, such as bringing some back for a shorter period of time.
more money
“Having analyzed it now has us wondering if they are showing the correct outputs.
“For the last 24 hours we have been comparing our values with other analysts who also seem to be in the same position as us, with disbelief in the values.”
A leading charity warned at the end of June that around seven million families in Britain are experiencing a “scary year of financial fear” and have been left without food, heating, toiletries and even showers to deal with the cost of living crisis.
The Josephy Rowntree Foundation added that the depth of poverty facing low-income households is so severe that more than two million households no longer have a choice between “heating or eating” because they have run out of both.
He said many are also in debt, living on credit cards and cash from loan sharks simply to pay for essentials such as groceries and electricity.
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