A massive hike in energy bills is expected to hit Brits from the start of next year.
In a new dire outlook for households, Cornwall Insight said that bills are set to soar to around £3,582 in October, from £1,971 today, before rising even further in the New Year.
Ofgem is set to put the price cap at £4,266 for the average household in the three months from the beginning of January.
More than previously forecasted
The energy consultancy said that this was around £650 more than its previous forecast.
It comes as Ofgem last week announced changes to how it will calculate the price cap on energy bills going forward.
“While our price cap forecasts have been steadily rising since the summer 2022 cap was set in April, an increase of over £650 in the January predictions comes as a fresh shock,” said Craig Lowrey, principal consultant at Cornwall Insight.
“The cost-of-living crisis was already top of the news agenda as more and more people face fuel poverty – this will only compound the concerns.
“Many may consider the changes made by Ofgem to the hedging formula, which have contributed to the predicted increase in bills, to be unwise at a time when so many people are already struggling.”
Responding to the price rises, money saving expert Martin Lewis described the predicted hikes as “tragic”.
He said: “These amounts are unaffordable for millions. The Jan figure equates to 45 per cent of the full new state pension, and a higher proportion of the old one.
“The rise alone on the Jan prediction, from when the help was first announced in May, is roughly £1,400/yr…
“That rise alone swallows up not just £400 help for all homes, but even the £1,200 for the poorest.
“This will leave many destitute. Tax cuts won’t help poorest including many elderly and disabled who’ve higher usage.
“Cutting green levy’d be just tiny sticking plaster on a gaping wound…”
He called on the “zombie government” to wake up to the warnings, saying they have been warned of the consequences.