New analysis from Cornwall Insight predicts that the average household will pay around £3,582 a year on energy bills–compared to a £1,971 cap set in April.
Furthermore, the analysts believe that the cap could rise by £650 in January, meaning the average household could pay £4,266 per year.
As energy costs are set to skyrocket, consumers may want to start preparing for the price hike now to help ease the impact of the cost of living crisis.
Understanding how much you might be expected to pay could help you budget ahead of October.
Find out below how to check how much you may be spending on gas and electricity this autumn by checking your personal projection.
How much could the average household spend on bills?
Under the £1,971 price cap, the average household could expect to pay £164 a month. But if the cap is raised to £3,582 in October, this monthly figure will increase to £298.
If the price cap rises to £4,266 in January, households could be paying £355 a month. The predicted price cap increase of £3,582 is an increase of around 82%.
This means that if you typically pay £100 a month on energy bills, you may start paying £182. If you usually pay £200 a month, your new bill might be £364.
What is an energy bill personal projection?
A personal projection is a calcuation of a household’s personal energy costs over the next 12 months.
It’s based on your current energy plan’s prices and considers any price changes that are taking place in the future, such as the upcoming energy cap price hike.
To find your personal projection, visit your energy provider’s website. Many major energy providers allow their customers to check how much they could expect to pay over the next year, including EDF, Octopus, Shell Energy, OVO Energy, British Gas, and SSE.
Simply log into your account and search for your personal projection tool. If your energy provider doesn’t seem to have a tool online, call them to see if they can provide you with one.
Be aware that these estimates are based on whether you continue to use the same amount of energy as before, and don’t take into consideration the £400 energy bill discount.
How will the £400 energy bill discount impact the price hike?
The £400 energy bill discount will see households get £66 off their bills in October and November, and £67 off their bills in December, January, February, and March.
Therefore, a household that typically pays £164 a month could be faced with a bill of £232, rather than £298 in October, for example.
Futhermore, a typical household that pays £164 now could end up paying £288 in January, after the £67 discount (if the price cap rises to £4,266).