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Energy bills will cost more than £100 a week by April, experts warn

·Finance Reporter, Yahoo Finance UK
·2-min read
Energy bills A flame generated by a gas hob. Energy prices will rise by �693 a year for millions of households after regulator Ofgem hiked the price cap on bills to �1,971 or 54%. Picture date: Thursday February 3, 2022.
Energy bills could rise to £5,856 in April, says latest dire prediction. Photo: PA

Energy bills could hit more than £100-a-week by April 2023, analysts said in the latest of a series of worsening warnings.

Gas prices continue to rise and unless they drop in the coming months, average households could be facing an annual energy bill of £4,704 from January and £5,856 from April, according to energy consultant Auxilione.

The current energy price cap stands at £1,971 but, without dramatic government intervention, is almost certain to be nearer to £3,000 by October.

Energy bills are set to soar
Energy bills are set to soar. Chart: Yahoo

Auxilione predicted that officials will set the cap at £3,576 per year for the average household.

Based on Thursday's gas prices, they think the price cap will hit £4,704 next January and £5,856 in April.

The energy experts said: “Ofgem pointed out a potential change they are considering internally to remove around £100 from the cap (in an allowance).

Read more: 45 million Britons to be pushed into fuel poverty by January, study warns

"We've included it here, hence the reduction to the previous forecast. But despite this ray of light, most of the rest of the forecast contains pain for households."

Auxilione's forecast said bills would start coming down again from July 2023 but would still be thousands of pounds higher than they currently are by next winter.

The price cap used to be fixed twice a year but will now be set every three months, regulator Ofgem previously announced.

Read more: Energy bills: 3 key questions about Labour’s £29bn price cap plan

The Guardian reported that the energy industry has united behind a plan to set up a crisis fund that could prevent bills from soaring next year and provide a lifeline for households struggling with the cost of living.

The energy regulator is set to announce the new price cap, which will come into effect from 1 October, on Friday 26 August.

Watch: Why are gas prices rising?