A new grim analysis by consultancy BFY Group suggests that gas bills will rise even more than previous estimates pushing almost half of Brits into fuel poverty.
The report expects that the price cap in the fourth quarter of the year will be around £3,420, jumping to £3,850 in the first quarter of 2023.
These events combined with the growing energy insecurity have caused further price increases.
The winter UK gas contract also closed at all-time highs for a winter product last night.
That drove the BFY analysts to increase their forecast for the winter price cap.
That means that based on average customer consumption and typical usage patterns the average consumer will be paying over £500 for their energy in January alone.
Dr Gemma Berwick, a Senior Consultant at BFY Group told ELN: “On 26th July, wholesale gas prices for winter-22 closed at an all-time high of 482 per therm, with power prices at an eye-watering £519/MWh.
“This has driven up the forecasts for the Q4-22 and Q1-23 price caps to £3,420 and £3,850 respectively. This will drive many into fuel poverty and undoubtedly an increase in debt.”