The energy price cap could jump as high as £2,255 in October, according to a new report.

Cornwall Insight predicts the price cap, which places a cap on the default energy tariffs, will increase two times within the year.

That will be one in April that will see the annual limit for an average household on a standard variable tariff increase by 17% on the current price cap and one in October when it will rise by 77% from £1,277.

The energy market consultancy suggests a reform of the wholesale markets is needed to future-proof them against future volatile costs.

It also calls for the “fairest route” of rising costs over time away from “quick fixes” that could not guarantee recovery from high energy prices.

Gareth Miller, Chief Executive Officer at Cornwall Insight, said: “It is not helpful for the government to keep pointing to the Default Tariff Cap when pressed on what action it is taking.

“The cap will not protect consumers from increases in gas and power prices in the long run. Certainly, the cap has delayed the burden of these costs to consumers, but they will face them anyway as the default tariff cap rises in a lag to the rise in gas and power prices.”