Energy bills are set to soar once again in October 2022 as Ofgem confirms an 80% rise to the new energy price cap.
Under the new cap, the average household bill is set to skyrocket from £1,971 to £3,549.
The price cap already increased by 54% in April, and the new huge rise will leave millions of households across the country struggling to get by.
Unfortunately, the cost of living crisis isn't set to end anytime soon and experts have predicted that the energy price cap will continue to rise next year, with bills increasing massively.
Here's when the next adjustment to the energy price cap will be and how much it will go up by.
When is the next energy price cap?
Usually, the energy price cap is updated every six months, however in August Ofgem announced that the price cap would now be updated quarterly.
This means that the cap will be reviewed every three months, so the next energy price cap will come into effect on January 1 2023.
Following that, the price cap will be adjusted again in April, July and October 2023.
Ofgem said that it had made the decision to adjust the price cap more regularly so that prices reflect wholesale gas and electricity costs more quickly and accurately.
Commenting on the change at the time, Jonathan Brearley, the CEO of Ofgem, said: “The trade-offs we need to make on behalf of consumers are extremely difficult and there are simply no easy answers right now.
"Today’s changes ensure the price cap does its job, making sure customers are only paying the real cost of their energy, but also, that it can adapt to the current volatile market."
How much will the next energy price cap rise by?
According to the latest predictions, the next energy price cap could rise by 51%.
Energy consultancy firm Cornwall Insight has warned that "the energy crisis is showing no sign of abating" and has now forecasted that the average household energy bill will reach £5,386 in January.
On Twitter, Money Saving Expert Martin Lewis said "this is a strong prediction" but added that it would be "tough to predict after".
However, Cornwall Insight's current estimates predict the cap will rise even more in April 2023, bringing the average energy bill to an average £6,616 per year.
From there, its analysts have estimated this figure to drop to £5,897 in July and £5,887 in October 2023.
These figures are not the maximum amount that suppliers can charge per year, they signify the annual cost for the average energy users.
The price cap sets a limit on unit rates and standing charges, so you could pay more if you use more than the average amount of energy.
