HOUSEHOLD fuel bills are set to rise by at least £800 at the next price cap review.
The head of the energy regulator Ofgem has told MPs he will write to Rishi Sunak, recommending the next rate be set at around £2800.
This would come into effect in October, raising bills from the current cap of £1971.
The eye-watering rise will be hard to stomach for consumers, with many people already struggling to pay their bills and buy food as the cost of living soars.
Ofgem chief executive Jonathan Brearley told the the Business, Energy and Industrial Strategy Committee today that that the regulator is expecting an energy price cap in October “in the region of £2,800”.
He said: "I am afraid to say conditions have worsened in the global gas market since Russia’s invasion of Ukraine. Gas prices are higher and highly volatile. At times they have now reached over 10 times their normal level
“I know this is a very distressing time for customers but I do need to be clear with this committee, with customers and with the government about the likely price implications for October.
“Therefore later today I will be writing to the Chancellor to give him our latest estimates of the price cap uplift.
“This is uncertain, we are only part way through the price cap window, but we are expecting a price cap in October in the region of £2,800.”
The energy boss apologised for failings in the past, which he said could have prevented suppliers going bust.
He also warned that there could be further price rises in future if Russia chose to disrupt gas supplies.
Mr Brearley said: "The price changes we have seen in the gas market are genuinely a once-in-a-generation event not seen since the oil crisis of the 1970s.
“In any conceivable circumstances there would have been supplier failure.
“However, it is clear to me and it is clear to the current Ofgem board that, looking over all of our institution’s history, had financial controls been in place sooner we’d have likely seen fewer suppliers exit the market, and for that on behalf of Ofgem and its board I would like to apologise.”
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