Predictions for the amount the energy price cap will rise by has once again increased.
It comes following dramatic increases in gas prices on Monday with experts suggesting that unless they drop, average households could face an annual energy bill of £4,650 from January and £5,456 from April. Energy consultancy Auxilione added nearly £200 compared to its previous forecast for April.
Meanwhile, the price of buying gas for the fourth quarter of this year is now around 100p higher than it was just two weeks ago, while electricity prices have also increased by around £100 per megawatt hour. On Monday, one therm cost around 563p and a megawatt hour of electricity cost £606.
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Currently, the expert's forecast predicts that bills will begin to fall from July, initially to £4,811 and then to £4,446. Despite this, it will still be thousands of pounds more than what households are currently paying.
Following the predictions, the Labour Party called for the price cap to be frozen at its current level of £1,971 until April so struggling families can better cope during the winter period. Pressure is increasing on the government to provide more support after it added £400 to help households with bills through six instalments starting in October.
The support was initially announced in May when experts believed the price cap would only increase to £2,800 in October. The Guardian reported on Monday that four of Britain's major energy suppliers - Scottish Power, E.ON, Octopus Energy and British Gas co-owner Centrica - are in favour of a fund that could freeze bills for two years.
Scottish Power and E.ON have even suggested the introduction of a tariff deficit fund to ministers where banks would supply cash under a government guarantee that would let bills be frozen for the period. Following this process, banks would be paid back over 10 to 15 years.
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