Collapses of energy companies could potentially add an estimated £164 to customers’ bills amid energy crisis.

Citizens Advice suggests the bill for supplier failures, including the administration costs for Bulb, currently stands at £4.6 billion.

The charity has urged the government to explore how different outcomes of the sale of Bulb could affect household bills.

Last month, the Business Secretary told MPs the government wants to conclude a sale deal as soon as possible

Just a month away from the announcement of the October price cap, new forecasts from Cornwall Insight have seen the default tariff cap for the first quarter of 2023 rise to £3,363 a year, increasing significantly from £3,003, the last estimate released two weeks ago.

Dame Clare Moriarty, Chief Executive Officer of Citizens Advice, said: “An overhaul is needed before winter piles more pressure on suppliers and customers.

“The government must improve the supplier failure process and ensure people who are struggling are not chased for debts or left in limbo when they are waiting for a refund.”