Money Saving Expert founder Martin Lewis has predicted that with the rising cost of living crisis in the UK, many homes are headed for an 'energy bill disaster' by October.
However, always happy to help share his knowledge, the finance expert has put together an abundance of solid advice to help cope with energy costs, which could hit an eye-watering £3,300 on average this winter.
Speaking in this week's MoneySavingExpert email, Martin said: "The coming winter will be bleak, the cost of living crisis is set to climax in catastrophe, unless there is further intervention. Though the clock is ticking, by the time the new PM is in place, we'll know the new price cap, so rising direct debits will be panicking millions.
Read more: Martin Lewis warns that Britain may face energy bill strikes - with households refusing to pay
"For now, let me explain what's coming, and try to mitigate it where I can."
The Ofgem price cap, which currently sets limits on how high variable-rate energy bills can escalate to for average users paying by direct debit, is currently set at £1,971 for 22 million households. Here are Lewis' 'need-to-knows' about the future of energy bills:
The finances guru explained that if you pay £50 a month now, you're set up to pay around £85 per month from October - as the price cap is going up. Latest predictions from analytics at Cornwall Insight suggests that the price cap could rise to £3,244 from October - up from the £3,003 figure estimated just two weeks ago.
If you're paying a higher rate of £150 each month now, you are predicted to be paying £250 a month from the same timeframe. Those paying £200 now will face bills of £330 a month, and those paying £300 already will be predicted to be paying £495 when the price cap rises.
Lewis added: "This price cap is mostly predictable as it is dictated by regulator Ofgem's published algorithm, based mainly on year-ahead wholesale prices. These have spiked in recent weeks, so analysts Cornwall Insight's latest predictions are frightening."
How to know if a fixed rate is right for you
More than 80% of UK households are now on variable-rate deals. Mostly that is because the price of variable-rate deals are limited by the Ofgem price cap. However, this is also because there are very few fixed rate options on the market - and if they're available, they may be more expensive still.
Martin said: "Based on those predictions, over the next year you'll pay 57% more than the current price cap for energy. If you can find a fix at less than that, it's worth considering".
Save cash if you can
If you're able to set any cash aside before energy bills rise once more, it's certainly worth doing.
Martin added: "I know that's a pipe dream for many, yet for those who do have savings or currently spend less than you earn, putting some aside or even asking for your energy direct debit to rise should ease the winter cash-flow pain."
See if you can cut your energy use
With variable-rate energy deals you pay for the energy you use. The more units you consume, the more you pay.
With that in mind though, Martin said that it makes sense to cut energy usage if possible MoneySavingExpert's tip to reduce bills include fitting a water-saving shower head - which can slash energy consumption by 2 per cent each year. Of course, these accessories will help you use less water too.
Energy saving light bulbs were another one of the money buff's better tips - with LED ones using half the power of the spiral fluorescent types. Spending one minute less in the shower could also save you a whopping £75 annually in energy costs for a family of four - and £105 in water bills too.
Ditching your hot and heavy tumble drier is another good way to save cash too, with the Energy Saving Trust predicting that you can save £60 a year by using air drying techniques when possible.
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