The Ofgem price cap is due to hit £3,549 this October as the cost of living crisis continues to deepen.
This is up by £1,578 - or an 80% increase - from its current level of £1,971 for those on default tariffs who pay by direct debit.
But households may avoid this major increase in energy bills as Prime Minister Liz Truss is expected to freeze the cap at its current level, with an announcement due today.
But otherwise this is how the Ofgem price cap works, and how much we pay for energy bills as a result.
The price cap currently covers around 24 million households.
If you're worried about your energy bills, we explain what you need to know about the energy price cap and who is affected.
Are you worried about rising energy bills? Let us know: webnews@reachplc.com
What is the Ofgem energy price cap?
Despite what its name suggests, the price cap isn't a limit on how much you pay for energy.
Instead, it sets a limit on the rates a supplier can charge for each unit of gas and electricity you use.
This means you may pay more or less, depending on how much energy you use.
The price cap is altered every three months, in January, April, July and October.
This means the next time it will be reviewed is in October, then 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.
Are you worried about paying your energy bill? Let us know: mirror.money.saving@mirror.co.uk
This is why the price cap has gone up.
The cost of wholesale gas soared following the Covd pandemic - with suppliers pushing the increase onto customers.
Businesses being shut down led to low global energy consumption, which was then followed by a rapid bounceback as the economy began to open up again.
Prices have since risen further following the Russian invasion of Ukraine.
Will my energy bills go up?
Households that are on the price cap are on a variable rate tariff.
If you are on a variable tariff, then you will see your bills go up in line with the price cap in October - unless Truss freezes this cap.
Customers paying by direct debit will see yearly bills rise from £1,971 on average now to £3,549 in October.
Prepayment customers - typically those struggling to pay for their energy - will see the price cap jump from £2,017 to £3,608.
Standard credit customers - so where you pay once you've received your bill - will see their price cap rise from £2,100 to £3,764.
These figures are based on someone with typical use - hence why your bill is likely to vary massively from these prices.
What energy bill help is available?
If you're worried about rising energy bills, then it is important to know what help is out there.
Talk to your energy bill provider as soon as possible if you can't pay your bill.
They might be able to put you on a payment plan or offer some sort of tailored support.
It's also worth asking them if you're definitely on their cheapest deal.
All the big energy firms have charitable hardship funds and grants that you may be eligible for if you’re struggling.
For example, the British Gas Energy Trust can be accessed by anyone - not just its customers - providing you meet the eligibility criteria.
The Warm Home Discount scheme, which is a one-off payment of £150 distributed by energy suppliers, will open again this winter for vulnerable and low income households.
Every home in England, Scotland and Wales will also receive £400 off their energy bills, spread out over six months from October.
For specific energy debt help, speak to:
