Energy prices could hit nearly £4,000 a year as Russia continues to limit gas supply to Europe.
This has spurred wholesale prices to rocket and the average energy bills could hit £3,850 a year by January. This comes as experts already warn of a 64 per cent increase on the price cap come October.
Millions of households around Scotland are already struggling to pay their energy bill as the April price cap pushed the cost up by 54 per cent with the average Direct Debit coming in at a record £1,971 a year. As first reported by The Times, bills are expected to rise to £3,420 in October and £3,850 in January, according to Energy Retail and Utilities management consultancy, BFY.
READ MORE- Edinburgh trains today as strike action causes travel chaos across Scotland
After Moscow cut gas supplies to just per cent through the Nord Stream 1 pipeline to Germany, wholesale prices surged to an all-time high of 530p per therm on Wednesday morning. The Kremlin-backed energy centre Gazprom has blamed it on a maintenance issue in Germany involving a turbine.
While Britain typically received about four per cent of gas from Russia, there is a concern that there will have to be a rationing system put in place in Europe. Gemma Berwick, senior consultant at BFY has warned that “any further drops in flows will cause further price increases”.
The UK is still heavily linked with Europe by pipelines, and is reliant on it to secure LNG cargoes. As a result, prices in the UK are closely correlated with those on the European continent.
The UK Government has been warned this week by the business, energy and industrial strategy committee that households need to be given more support on top of the cost of living payments that have be established. The current cost of living payments and energy discount were announced when energy bills were forecasted to reach £2,800 in October.
READ NEXT
Edinburgh trains today as strike action causes travel chaos across Scotland
Experts share how to keep luggage safe when travelling as hundreds lose bags
Edinburgh Airport: Lufthansa staff strike sparks flight cancellations to holiday hotspots
Slack down as over a thousand report issues with workspace messaging platform
Martin Lewis issues urgent warning to all households ahead of 'horrendous' increase
