Martin Lewis has warned that energy bills could rise by another £1,000 this winter as families continue to struggle against the cost of living.
The MoneySavingExpert founder took to Twitter to flag the latest energy price cap analysis from Cornwall Insights.
The Ofgem energy price cap sets a limit on the rates a supplier can charge for each unit of gas and electricity you use.
It is currently set at £1,971 a year for those on a default tariff who pay by direct debit.
But experts at Cornwall Insights predict this will rise to £2,980 in October, before hitting £3,000 in January.
"Just got latest @CornwallInsight price cap predictions. Wholesale prices spiked heavily last week, so they're up a lot," said Martin.
Are you worried about affording your energy bill? Let us know: mirror.money.saving@mirror.co.uk
"Today's price cap: At typical use = £1,971/yr. Prediction Oct - Dec: UP 51% (£2,980/yr typical use). Prediction Jan - Mar: UP 1% (£3,000/yr typical use)"
He continued: "Oct's price cap is based on energy prices Feb - July so we're already most way thru that, so price falls wouldn't change too much.
"Tho the Jan price cap would (not that a huge fall's likely).
"Next Apr's cap is predicted to move down 10%, but that's still be far higher than now."
Around 22 million households are covered by the price cap right now, due to the lack of cheap deals.
It is currently reviewed twice a year - in April and October - but Ofgem wants to renew it more frequently to four times a year, meaning prices would change again in January.
You’ll be on the price cap if your fixed deal ended and you didn’t lock into another tariff.
The latest estimates are higher than previously forecast. Last month Ofgem said it expected the next price cap review to push energy bills up to £2,800 a year.
Last week saw Martin take to Twitter to explain how wholesale energy prices “have spiked” again over the last week - as he urged households who are considering a fixed deal to move fast.
At the time, he said you should only consider fixing into an energy deal that is no more than 35% higher than the current price cap.
This rises to no more than 40% more “if you very strongly value budgeting certainty”.
However, these figures are likely to change now the price cap estimate has risen - the MSE founder said he will be issuing new advice on when households should fix.
The latest MSE calculations show there are currently no fixes below 40% more than the current price cap on the open market.
However, you might be able to get a better deal by speaking to your existing energy provider.
Millions of households will receive a £400 discount on their energy bills later this year as families continue to struggle against the cost of living crisis.
The new support was confirmed as a replacement for the £200 "loan-not-loan" that would've needed to be paid back starting from 2023.
