Households could see their energy bills rise by 30 per cent next years, analysts claim.
Research agency Cornwall Insight is predicting increasing gas prices as more suppliers potentially collapse, pushing the energy price cap to around £1,660 next summer.
This price cap is approximately 30pc higher than the record £1,277 cap set for winter 2021/22, which came into effect at the start of October.
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Craig Lowrey, senior consultant at the firm, said: “With wholesale gas and electricity prices continuing to reach new records, successive supplier exits during September 2021 and a new level for the default tariff cap (£1,277 for a typical dual fuel direct debit customer) for Winter 2021/22, the GB energy market remains on edge for fresh volatility and further consolidation.”
The gas price cap is reviewed by energy regulator Ofgem every six months.
It changes based on a number of factors, including the cost that suppliers have to fork out for their energy, cost policies, operating costs, and more.
Ofgem admitted in a statement to the BBC that it was a 'worrying time for many people'.
The regulator added: “The energy price cap covers around 15 million households and will ensure that consumers don’t pay more than is absolutely necessary this winter.
“However if global gas prices remain high, then when we update the price cap unfortunately the level would increase.
“Any customer worried about paying their energy bill should contact their supplier to access the range of support available.”
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