Energy bills are set to soar for many once again this winter, as experts predict the default tariff price cap will rise by more than £100 a year.

The latest Cornwall Insight report suggests price cap will increase to £1,250 per year for a typical dual fuel direct debit customer from its current level of £1,138.

Energy analysts attribute this increase to the rise in wholesale energy costs.

They note costs have risen to some of the highest seen since 2018.

Dr Craig Lowrey, Senior Consultant at Cornwall Insight, said: “Wholesale prices have been hit by a combination of factors. Underlying commodity prices have risen, so, too, have carbon prices reaching a high of €50 (£42.9) per tonne of carbon and more than doubling over the past year.

“On top of this, underlying gas prices have risen considerably due to a cold winter across Europe and low levels of gas in storage facilities. Moreover, the rising carbon, oil and liquefied natural gas prices have further supported this rise in underlying gas prices.”