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UK energy regulator Ofgem last boosted the price cap, which controls how much suppliers can charge customers for energy use, in April. Officials increased it by 54 percent – £693 – bringing it to £1,971, and they anticipate having to take further action in October. Britons may have to pay upwards of £3,000 a year by then, but some may face additional charges earlier than others.<\/p>\n
In August, analysts at Cornwall Insight predicted typical use rates in the UK could increase to £3,359 by October 1.<\/p>\n
The 70 percent hike could have crippling effects as energy use increases with colder conditions.<\/p>\n
Ofgem has warned that some households may foot the costs earlier to help mitigate the impact over autumn and winter.<\/p>\n
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The regulators have warned it is “possible” for suppliers to raise direct debits before the new cap activates in October.<\/p>\n
A spokesman told the BBC that direct debits are occasionally charged more in low usage seasons like summer to build up “credit”.<\/p>\n
That credit would help spread out costs during months with the highest usage rates.<\/p>\n
The spokesman added this means some customers face higher bills when their use has “remained constant”.<\/p>\n
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Ofgem stressed that customers may opt out of the arrangement if they speak with their providers.<\/p>\n
People may ask providers to return their credit “at any time” and pay for “exactly what they use” each month instead.<\/p>\n
Ultimately, this would mean they lose out of mitigated rates later in 2022, when they require energy the most.<\/p>\n
They may need the respite now, as recent long-term energy bill forecasts suggest rates could exceed £5,000 in 2023.<\/p>\n
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Consultancy firm Auxilione has predicted that UK households face sky-high rates due to a steep rise in wholesale gas.<\/p>\n
Analysts said Ofgem would adjust the cap to £3,600 in October and exceed £5,000 in the “first half” of next year.<\/p>\n
Energy wholesale prices have suffered as the western world moves away from Russian exports, and dry weather has exacerbated them further.<\/p>\n
European electricity exporters have had to dial back their businesses as the continent’s key waterways run near empty.<\/p>\n
The Rhine river, which has facilitated the German, Dutch and Swiss economies for centuries, is among those drying up.<\/p>\n
Authorities predicted water levels could plummet to 40cm by Friday, August 12, reducing energy production at its hydroelectric facilities.<\/p>\n
Both German and Norwegian exporters have had to restrict their electricity exports in response.<\/p>\n
By the end of the year, experts have warned that “worst case” energy shortages in the UK may warrant controlled blackouts.<\/p>\n