Energy bills are set to soar - and the news has sparked worry as people stress over future costs.
Government regulator Ofgem today confirmed a price cap increase of 80 per cent, jumping to a staggering £3,549 from £1,971.
The price cap applies to those on a default energy tariff, which is about 24 million households in Scotland, England and Wales.
This means anyone pays thorough a prepayment meter, standard credit or a direct debit, will be subject to the rise from October 1. The increase won't apply to you if you are on a fixed-term energy tariff.
If you're worried about how much you will have to pay this winter, you can try out our energy bill calculator to find out how much bills could jump to.
Energy bill calculator
To use our energy bill calculator, simply enter the amount of your current monthly energy bill. The calculator will then determine cost projections for October 2022, January and April 2023.
For example, someone who pays £70 a month now, could see their bill jump to £126 by October, then to £191 by January and finally to £234 by April.
These figures are based on predictions from energy market research firm Cornwall Insights. Of course, it is important to remember that these numbers are not concrete and are subject to change.
Try the Energy Bill Calculator 2022 below
What is a price cap?
Rather than calculate bill costs, the energy cap limits the rate a supplier can charge for their default tariffs. This includes the standing charge and price for each unit of electricity and gas.
According to Ofgem, the price cap of typical usage for electricity is currently 28 pence per unit, while gas stands at seven pence per unit.
Under the new increase, the cap for electricity will rise to 52 pence per unit, while gas will more than double to 15 pence.
Your bill is still subject to change depending on how much energy you use. Therefore, the more you use, the more you pay.
This has added further strain, as many people can't plan ahead without knowing how much their future energy bills will come to.
The £3,500 figure is quoted for households that only have "typical usage" of energy. But most will use more than this to power their homes.
In fact, Money saving guru Martin Lewis warned that some bills could total between £5,000 and £10,000 for "heavy usage".
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