Autumn Hike in UK Energy Bills Could be Greater Than Predicted, Analysts Warn

British energy regulator Ofgem is set to announce the latest rise to its cap on household bills later this month. The watchdog allowed producers and billing companies to add up to 54 per cent to tariffs in April, after resisting industry pressure to lift its cap over the winter.

Brits face a "fresh shock" in the cost-of-living crisis, with the UK's energy watchdog set to raise the limit on gas and electricity more than previously thought.

Energy consultancy firm Cornwall Insight has forecasted that average annual household bills will rise to £3,582 in September — £223 more than the consultancy's previous estimate of £3,359 earlier this month.

The figure will see another huge jump of almost £700 in January to £4,266, before rising again to £4,427 in April.

British gas and electricity sector regulator Ofgem is set to announce how far it will lift its cap on home energy bills on August 26.

The revised figures come in light of rising wholesale prices and expected changes to how Ofgem calculates where to set limits.

Cornwall Insight principal consultant Dr Craig Lowrey called the predicted rise a "fresh shock" for bill-payers.

"The cost of living crisis was already top of the news agenda as more and more people face fuel poverty, this will only compound the concerns," Lowrey said.

While acknowledging the rationale of Ofgem raising the price limit so firms can stay profitable, the consultant argued that "it may be time to consider the cap's place altogether".

"After all, if it is not controlling consumer prices, and is damaging suppliers' business models, we must wonder if it is fit for purpose — especially in these times of unprecedented energy market conditions," Lowrey said.

The watchdog allowed producers and billing companies to add up to 54 percent to tariffs in April, after resisting industry pressure to lift its cap over the winter.

That followed last year's flurry of speculation on the natural gas market, which sent prices to then-record highs. Since, the embargo on Russian energy imports by the UK and some other NATO countries has reignited markets.

Petrol and diesel prices have almost doubled of late, adding not only to the cost of getting to work but also having a knock-on effect on retail prices.

Strikes have already broken out or are looming in multiple sectors across Britain, as trade unions demand pay rises to keep up with inflation which the Bank of England predicts will hit 13 percent in January.