Households already reeling from this week’s energy price bombshell could face more hikes before next winter, it has emerged.
Regulator Ofgem confirmed on Thursday that energy suppliers would be allowed to increase average prices for 22 million customers by an inflation-shattering 54% from April 1, adding a punishing £700 to the typical annual bill.
Experts predict bills could leap by another £300, to £2,300 next October given current sky-high wholesale energy costs.
But documents published by Ofgem today revealed households could be landed with further price rises between April and October.
The so-called “in-period adjustments” would only be used in “exceptional circumstances”, Ofgem insisted.
But it is believed that could include an unexpected jump in the wholesale cost of gas.
There are already concerns that a possible invasion of Ukraine by gas-rich Russia could trigger such a spike.
Ofgem is also proposing to potentially alter the price cap every three months, rather than the current three after next October, as the Mirror first revealed.
An Ofgem spokesperson said: “Our new measure to update the price cap more frequently than once every six months is only for exceptional circumstances to ensure that the cap still reflects the true cost of supplying energy and this would have to meet five strict tests.
“This is all in the interests of stabilising the market and making sure consumers and suppliers pay a fair price.”
It came as research found poorer households will l be hit harder by April’s energy bill shock, despite Chancellor Rishi Sunak ’s package of help.
Think tank the Resolution Foundation found the lowest-income households will see energy bills as a share of their overall spending rise from 7% in 2019/20 to 10% in the year from April.
That compares with a rise from 3% 5% of middle and high income families.
Even with the Chancellor’s £200 “rebate” in October, the Resolution Foundation found average energy bills will still rocket 39%.
It also discovered that large numbers of hard-up households will miss out on the Chancellor’s announced separate £150 council tax rebate.
One-in-10 of the poorest households in England - 640,000 households - live in council tax bands that are entitled to the £150 payment.
The Bank of England has warned households to brace themselves for the worst squeeze on living standards for 30 years, with disposable incomes dropping 2% this year.
The Resolution Foundation said this was equivalent to an average £1,000 loss for the average family.
Bank of England Governor Andrew Bailey said today the cost of living crisis will not ease until next year.
Mr Bailey said many people in the UK faced a “difficult period” ahead.
He also, controversially, suggested workers should not ask for big pay rises to cope with the rising cost of living, in order to prevent fuelling further inflation.
