The cost of energy could soar by some £1,645 within five months to hit £3,616 - power experts at Cornwall Insight estimate.
This news comes after many UK households have already felt the squeeze of the cost of living crisis, with already increased energy bills - but specialists predict that the worst is yet to come.
Energy regulator Ofgem have already limited energy bills for more than 80 per cent of UK homes through a price cap - however, this rose in April 1, 2022, from £1,277 to £1,971 per year on average.
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The Mirror reports that the price cap is being reviewed again in October. Cornwall Insight thinks this could rise by £1,388 to hit £3,359 in October - with a further rise of £257 to reach £3,616 in January 2023.
This is a figure of £1,645 more than it is now. A statement from Cornwall Insight said: "Our predictions for the price cap have continued to rise amid wholesale market volatility. Due to uncertainty over Russian gas supplies ahead of winter, these latest forecasts indicate the potential longevity of high household energy costs."
This is far worse than the analysis firm's earlier estimations, which put the October price cap at £2,879 and then £2,907 in January next year. The highest predictions however, have come from BFY, who said that these could hit £3,420 in October, with £3,850 when further reviews take place in January.
The most positive energy rise predictions come from regulator Ofgem. Chief Executive, Jonathan Brearley, has said the October price cap will be "in the region of £2,800" - although this comment was made back in May.
Cornwall Insight also thinks energy prices will stay "significantly above £3,000 a year until at least 2024".
Dr Craig Lowrey, principal consultant at Cornwall Insight, said: "Customers will be sadly used to these ever-increasing price cap forecasts. We have less than a month until the new price cap is announced and given the trends in the wholesale market and the concerns over Russian supply, unfortunately the only change to the prediction is likely to be up."
What is the Ofgem energy price cap?
Despite what its name suggests, the price cap isn't really a limit on how much you pay for energy - but it does work a bit like that. Instead, it sets a limit on the rates a supplier can charge for each unit of gas and electricity you use and is reviewed twice a year.
The price cap is altered every six months, in April and October but Ofgem has proposed to change this to every three months instead. This means it would be reviewed again in January.
Ofgem first introduced the price cap in 2019 and it is based on a number of factors including the wholesale cost of power in the previous six months.
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