Energy bills may rise even higher than initially thought this October, according to an energy consultancy firm.
Cornwall Insight has predicted that bills could reach as high as £3,582 per year for the average household which is up from previous predictions of £3,359. Furthermore, it is believed that bills could rise to £4,266 from January, going up once again to £4,427 in April - up from previous April predictions of £3,629.
Ofgem will soon increase the energy price cap which limits what energy providers can charge customers on both default and standard variable tariffs. The price cap is determined by how much the average energy supplier would spend providing energy for an average home while also looking at things such as usage levels and market data.
Read more: Ofgem issues warning to people who are threatening to not pay their energy bills
An Ofgem spokesman said: “The wholesale market continues to move extremely quickly so no forecast for next year is at all robust at this stage and will therefore have very limited value, especially for consumers who must always be the main priority.
“We cannot stop others from making predictions but we would ask that extreme caution is applied to any predictions for the price cap in January or beyond.”
Meanwhile, Ofgem has also warned against campaigners planning to not pay their energy bills in protest of rising prices after Money Saving Expert Marting Lewis warned of a 'bleak winter' for millions of households across the UK. Jonathan Brearley, CEO of Ofgem, said: "First of all, it will drive up costs for everyone across the board. And secondly, if you are facing difficulty in paying your bill, the best thing you can do is get in touch with your energy company."
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