Analysts estimate that the average household energy bill will break £3,000 for the first time ever in the New Year.
Specialist research firm Cornwall Insight upgraded its estimates for the autumn and winter energy cap following the recent spike in wholesale gas prices.
The projection for the fourth quarter of 2022, which will come into effect on 1 October, has been increased by £101 to £2980.
Cornwall Insight forecasts the £3,000 mark will be surpassed on 1 January, when the average yearly bill will be £3,003.
Currently, the cap is at £1,971 after rising 54% in April.
Ofgem, the UK’s gas and electricity regulator, sets the cap every quarter, which represents the maximum a supplier can charge for gas and electricity for consuming average levels of energy.
Quoted in the Standard, Craig Lowrey, principal consultant at Cornwall Insight said, “With the geopolitical events in Russia causing significant barriers to energy flows and the situation showing no sign of abating, we are unfortunately predicting average consumers will be facing a bill over 50 per cent more than the existing cap - itself an unprecedented rise.”
“While the UK gets very little energy from Russia, ultimately the countries that do are seeking alternative sources of gas.”
“This will impact the energy flows to the UK from Continental Europe and cause further volatility in the market, adding fresh upward pressure to prices.”
Although the government has offered short-term aid to help households in the form of the Energy Bills Support Scheme, Lowrey believes longer-term solutions are required to tackle the issue at hand, such as increasing investment in renewable energy.