Energy bills are set to exceed £4,200 in January 2023, according to a report by Cornwall Insight.
The institute said its forecasts for the January Default Tariff Cap had grown by over £650, representing a price tag of approximately £4,266 for the average UK household.
The bone-chilling shift represents a large step from previous estimations of £2,800 for this year.
Prices for October 2022 were also slated to rise by over £300, bringing the new average bill to £3,582.
Oil prices have been driven higher as a result of Russia’s invasion of Ukraine, leading to a mass boycott of Russian gas supplies and high price inflation across the market.
Brent Crude saw heights of almost $130 per barrel in March, and prices have remained high since February, sparking soaring prices and placing crushing pressure on households across the UK.
Cornwall Insight explained the rationale behind its new estimations included an increase in wholesale market forecasts, and an alteration in Ofgem’s calculation methodology.
Ofgem confirmed recently it would be revising prices every three months instead of every six months.
The organisation warned against making any concrete predictions for the coming year at the current time, and said wholesale prices were moving at too fast a speed to be pinned to a reliable forecast.
“We cannot stop others from making predictions but we would ask that extreme caution is applied to any predictions for the price cap in January or beyond,” said Ofgem in a statement.
