As more and more companies struggle to navigate through soaring energy prices and the rising cost of living, analysts have warned business energy bills are set to rocket in October.

Consultants at independent data analyst company Cornwall Insight have said as many businesses are negotiating their contracts with suppliers in October, some will face bills five times their current price.

They suggest concerns over gas supplies, tight electricity markets and the disruption to liquefied natural gas market could trigger further energy price spikes.

The report suggests business energy prices have been surging for 15 months, with higher increases than those experienced by households.

The consultancy says those businesses who negotiated two-year fixed price contracts in summer 2020 could potentially face a substantial fivefold rise in October.

Those renewing an annual contract are due to see bills twice what they paid this year.

The further increases in energy costs are believed to have a knock-on effect on firms’ resilience as it is feared that soaring energy bills could force more businesses closures.