Britons could soon find themselves paying more than £4,000 a year for the energy they use.

New research from Investec Bank Plc suggests the cap on default energy tariff could rise to £4,210 a year in January.

It is worth noting that the estimate is even higher than the previous one from consultancy BFY Group which suggested households might face energy bills of £500 a month under a price cap of £3,850 in the first quarter of 2023.

If this scenario becomes reality, it will mean that the level will be more than double that the existing one.

The new estimate comes a few hours after the Bank of England warned the UK will fall into recession this year.

Yesterday, Ofgem revealed a process that would allow the regulator to review the price cap every three months – that would mean that customers would see four changes in the level of their energy bills throughout the year.

Campaigners branded this plan as “inhumane” as it will hit households in winter when higher bills are expected.

Martin Young, Analyst at Investec, said: “We understand why Ofgem wishes to provide greater market resilience, but the pressure on households grows.”