UK households are in for a rough ride as forecast of a recession, rising inflation, and an increase in interest rates make for a bleak outlook.
Energy bills could be set to soar again to around £4,266 for the average household in the three months from next January.
Energy regulator Ofgem has announced it is changing the way it calculates the price cap, which is the limit set on the amount energy suppliers can charge households.
Ofgem’s changes, combined with continued price increases in the wholesale energy market, are what’s behind the increase.
Analysts have predicted further rises in 2023, warning the cap could reach £4,427 from the start of April.
Community advisers are already seeing record demand for their services and expect calls to their helplines to increase.