Already struggling Brits will face paying energy bills of £400 a month from next year as the price cap is expected to climb even higher.
There are fears that the annual cap set by regulators could rise to a terrifying £4,700 by April next year.
It equates to £391 a month and will only add to the pain many struggling households face.
The family’s annual expenses, including energy, mortgage payments and food bills, could rise by £6,000 in December compared to last year due to rampant inflation.
Energy consultancy Auxilione predicted that the price cap on energy bills could reach £3,687 in October, almost double the current record levels.
This is believed to be the worst outlook yet for the 24 million households subject to the cap, with more increases expected in 2023.
Auxilione added that the limit could be around £4,400 in January, although it was not certain.
The consultancy said it was checking its figures due to changes to the price cap rule made by sector regulator Ofgem.
It added: “We are publishing today’s view with a warning that we must redo our analysis this week to “double down” that the output is correct. Be sure to sit down before reading on.’
If it is true that the price could climb to £4,700 in April, this would mean a price cap more than four times higher than before the gas price crisis hit in 2021.
Drops won’t happen until July, when the price cap could drop to £4,000. But then it would still remain at double power levels.
Auxilione said: ‘Thursday Ofgem released their final models, including some changes to the allowances within the limit, such as restoring some of these over a shorter period of time.
‘Having analyzed these now, we wonder if they show the right outputs.
“Over the past 24 hours, we’ve been comparing our values with other analysts who also seem to be in the same position as we are — in disbelief about the values.”
A leading charity warned in late June that around seven million families in Britain are going through a ‘terrifying year of financial anguish’, with no food, heating, toiletries and even showers to cope with the rising cost of living.
The Josephy Rowntree Foundation added that the poverty facing low-income households is so severe that more than two million households could no longer choose between ‘heating or eating’ because they had already done without both.
It said many are also deeply in debt because they live off credit cards and loan sharks’ cash just to pay for staples, including groceries and electricity.
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