Experts are warning households across the UK that the energy price cap could double which could cost millions of Brits around £500 in January.
BFY Group warned that they are expecting the cap on energy bills to hit a staggering £3,850 between January and April in 2023 as Vladimir Putin has cut the flow of gas to Europe.
Despite the UK receiving a very small amount of Russian gas the price households pay here is affected by what happens in Europe.
Brits already faced a price hike from April this year as energy bills hit an eye watering £1,971 and Moscow has been accused of deliberately “weaponsing” gas to Europe because Western countries have imposed sanctions on Russia.
Dr Gemma Berwick, a senior consultant at BFY Group said, “Following further rises in wholesale prices as flows of gas from Russia to Europe via the Nord Stream 1 pipeline drop to 20% of capacity, we now forecast the Ofgem price cap to rise to £3,420 in the fourth quarter of 2022 and £3,850 in the first quarter of 2023.
“This will make the average household bill over £500 for January alone.”
The utilities consultancy now believes that Ofgem will now have to intervene to set the earlier October price cap change at £3,420 as another increase in energy bills is expected when it is reviewed in January.