MILLIONS of households will see their energy bills soar by almost £400 next year after the wholesale cost of gas shot up by 40 per cent in a single day.
Experts predict the energy price cap will climb to £1,660 a year from next April after the latest price surge.
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The cap — which limits what suppliers can charge for their standard or default tariffs — has just been raised by £139 to £1,277 a year for a typical customer.
However, a global energy crunch as demand ramps up ahead of the winter has seen wholesale gas prices repeatedly smash records in recent days.
Yesterday, UK gas contracts for delivery in November jumped 40 per cent to reach an all-time high of more than £4 per therm — a unit of heat measurement.
Energy market consultants Cornwall Insight said last night “due to wholesale gas and electricity prices continuing to reach new records” its forecast for the 2022 price cap had risen to £1,660.
Fixed-rate deals being offered by energy suppliers are already higher than that, with the cheapest at £1,700 a year. Financial expert Martin Lewis recommends not switching to these yet.
Industries that consume a lot of energy have warned they may struggle without government intervention.
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Danni Hewson, of stockbroker AJ Bell, said: “Even at current prices, some sectors will struggle to operate as normal over the winter and those that can keep operating as normal will have to find a way to push costs through the system.
“Ultimately, it will be the consumer that will have to pay and for some consumers, today was as unwelcome as an egg sandwich on a crowded train.”
Martin Lewis explains why you need to take a screenshot of your energy bill NOW
