HOUSEHOLDS have been warned they could face an annual energy bill in excess of £3,600 this winter.
Gas and electricity bills could reach £3,616 in the new year, according to experts – hundreds of pounds more than previous predictions.
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In May, the Government announced an energy costs support package – worth £400 per household – in response to predictions that bills would rise to £2,800 for the average household in October.
But experts at Cornwall Insight said that bills are now likely to rise to £3,358 from October and £3,615 from January.
Families are set to find out how much prices are set to go up on August 26 when Ofgem announces the new energy price cap.
Cornwall Insight’s principal consultant, Craig Lowrey, said surging gas prices and concerns about Russian supply have caused the increase.
He added: “While the rise in forecasts for October and January is a pressing concern, it is not only the level – but the duration – of the rises that makes these new forecasts so devastating.
“Given the current level of the wholesale price, this level of household energy bills currently shows little sign of abating into 2024.”
Millions of households across the country will receive a £400 discounts off their energy bills from October.
It’s up to energy firms to administer and distribute the discount directly to their customers.
On Friday, Richard Neudegg, director of regulation at Uswitch, called for the £400 to be increased to at least £600, and for payments to vulnerable households to rise from £650 to £950.
“The Government did the right thing by stepping in with wide-reaching support to try to help ease the blow. However, this support now looks like a severe under-estimation of what consumers need,” he said.
“Households need clarity to help them plan for the most expensive winter in living memory.”
Charity National Energy Action last month predicted that, should the average bill reach £3,250 per year, 8.2 million UK households will be in fuel poverty, or one in three.
More to follow…
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