Energy bills set to hit £4,000 a year, experts warn | Personal finance | Finance

Energy consultancy Auxilione has warned that the government’s price cap, which sets bills for more than 20 million households, could be increased more than expected. He said between October and December the price cap should be £3,488 a year for the average household. Energy bills are currently capped at £1,971 – already a record high.

But from January the price will jump another £500 to £3,994, according to the company’s research.

Auxilione’s forecast comes less than a day after analysts at Investec forecast October’s price cap to be £3,523, with bills hitting £4,210 in January.

On Wednesday, Russian state producer Gazprom said it was “impossible” to take over a turbine vital to Europe’s gas supply due to Western sanctions. The turbine is stuck in Germany but Berlin insists the equipment is not subject to the sanctions and accuses Russia of not honoring its contracts for political reasons.

The key Nord Stream 1 gas pipeline linking Russia to Germany is operating at 20% capacity.

The news comes on top of the nightmare scenario for households announced by the Bank of England on Thursday.

He expects inflation in the consumer price index, a measure of the cost of living, to hit 13.3% in October as energy bills rise. About half of inflation is directly due to energy prices.

Development plans have been announced for an oil field in northwest Scotland that could produce almost 70,000 barrels of oil a day at its peak.

Norway’s state-controlled Equinor is seeking approval for the project, but environmental campaigners say it would be a “total betrayal” of climate targets if the UK government gives the green light.

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