The energy price cap could reach £7,700 next year, price cap experts have warned, as the cost of living crisis shows no signs of abating.

Currrently the price cap is already set to increase by 80% in October - pushing the average household’s yearly bill up from £1,971 to £3,549 - with it set to be even higher by the start of 2023.

From there it is set to almost double, to around £5,600 in January and then rise even further, under the latest estimates.

Energy consultancy Auxilione forecast a £7,700 bill from April 2023 – with gas costing consumers 34.22p per kWh.

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The forecast is an increase of £438 since Auxilione’s prediction on Friday morning, and up nearly £900 in just two days.

It comes as gas prices continued to soar on international markets, along with the price of electricity.

Almost all of the changes in the price cap are to allow suppliers to recoup the costs that they will have buying gas and electricity from the companies that produce it.

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Gas prices are decisive in determining electricity prices because over the last year 42% of the UK’s electricity was generated by burning gas.

The cap is the maximum price that households on their supplier’s default tariff would have to pay for every unit of gas and electricity they used for the next three months.

It is calculated based on the wholesale price of gas and electricity and also includes allowances for tax, charges paid to the energy networks, green levies and social payments.

Your Money Matters

Your Money Matters is a campaign launched by us and our sister titles across Newsquest to help you overcome the surge in the cost of living. This year has seen a whole host of household price increases — from the energy price cap rise to surging inflation and food prices — costing your family hundreds or even thousands of pounds extra per year. We’re making it our mission to look out for your cash, offering money-saving deals, competitions, giveaways and insightful stories from your community on the impact this cost-of-living crisis is having on our readers. The worldwide energy crisis exacerbated by the Ukraine invasion, the financial impact of the Covid pandemic, record inflation figures and a surge in the cost of goods, fuel and travel means we will all feel the pinch. Through our newspaper, we want to do what we can to help make your cash go further because we know your money matters.