Another energy shock is facing households in October when bills could surge by a further £600, reports The Sun. Families could be hit with further increases just months after April's energy price cap hike, which has added £693 to the average bill.
The price cap has risen to £1,971, a 54% jump, adding hundreds of pounds to millions of households' energy costs. Experts have predicted that the cap could rise a further £600 in October, taking the average bill to £2,571.
If the forecast from Cornwall Insight is correct, that means the cap will have doubled in just one year. The price cap limits how much energy suppliers can charge for their standard variable tariffs.
The £1,971 figure, and £2,571 prediction for October, is based on average use. Cornwall Insight's analysis is just a prediction, and the actual October price cap will be announced by energy regulator Ofgem in August.
Craig Lowrey, principal consultant at energy analysis firm Cornwall Insight, said: "If Cornwall Insight’s predictions for the winter 2022-23 cap are realised, households will be set for yet another significant hit to their finances in October. While the Government’s £350 worth of support will provide some respite to consumers this time around, albeit not far enough, with the cap almost guaranteed to rise again, the Government will need to look at expanding the scale and scope of this support after October at the very least."
The firm said predictions for the cap are likely to change because of the volatility of wholesale gas prices, which are being affected by the war in Ukraine and sanctions on Russia. However, Cornwall Insight added that "significant cap rises look inevitable".
If you're struggling with your energy bills, there is help available. The Government is giving 80% of households a £150 council tax rebate and it will also give all families a £200 energy bill refund from October, but this will have to be paid back eventually.
Your first step if you're struggling should be to speak to your energy supplier. It may be able to change your payment plan or check if you're eligible for a hardship fund.
You should also check out tips to make your home more energy efficient, which could wipe hundreds of pounds of your bills. For example, you can reduce energy use with a simple trick such as putting foil behind your radiator.
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