British households have been told to brace for annual energy bills of £3,616.

Consultancy Cornwall Insight told BBC Breakfast that domestic customers could pay £3,359 a year in October and £3,616 in January.

Although this estimate is lower than the grim prediction last week for monthly energy bills of £500, it is still significantly higher than the current £1,971 set in April.

Dr Craig Lowrey, a Principal Consultant at Cornwall Insight, said: “While the rise in forecasts for October and January is a pressing concern, it is not only the level – but the duration – of the rises that makes these new forecasts so devastating.”

A few days ago, in an interview with BBC, a Cornwall Insight consultant said the UK might be in danger of running into voluntary gas cuts like those seen in Germany to limit its exposure to volatility and safeguard its energy supplies.

Dr Lowrey added: “Given the current level of the wholesale price, this level of household energy bills currently shows little sign of abating into 2024.”

Ofgem is set to announce the new price cap at the end of August.