Surging energy prices could push average bills to £2,000 each year, experts reveal
SURGING energy prices could push average household bills to £2,000 each year, experts have revealed.
Energy industry analysts said the current bills cap of £1,277 could climb by £800 amid the gas crisis.
Ofgem is responsible for setting the cap, and its chief executive Jonathan Brearley has warned that it will need to be "adjusted" in April.
He said: "Although the gas price rise is unprecedented today, we will need to plan on the basis that shocks like this could happen again.
"For millions of households the price cap has played its part in mitigating the consequences of the current gas price rises. But it is designed to reflect fair costs and therefore will need to adjust over time to reflect the changes in fuel costs that we are seeing today."
Industry insiders have suggested bills could rise by between £500 and £800 in April, the Daily Mail reported.
Analyst Dr Craig Lowrey, from Cornwall Insight, told : "It is hard to predict how long gas prices will stay high, but we do expect significant upward pressure on prices."
It comes as 10 per cent of firms admitted they have been forced to increase prices in the past month.
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Meanwhile Russia has been urged to ease the escalating energy crisis by sending more supplies to Europe.
The plea came as the National Grid warned that the risk of UK power shortages this winter will be the highest in five years and there may be “significant price spikes”.
Gas prices have already hit record highs this week.
The International Energy Agency, which advises the international community on energy policy, believes Russia could raise winter exports to Europe by 15 per cent.
But the country has indicated more gas would only be made available once the Nord Stream 2 pipeline to Germany is approved.
IEA executive director Fatih Birol yesterday urged Putin to prove that he is a “reliable supplier” by helping alleviate the global supply crunch that has sent energy prices spiralling.
He said: “If Russia does what it indicated and increases the volumes to Europe, this would have a calming effect on the market.”
Dmitry Peskov, Putin’s spokesman, said yesterday there was “potential” to increase supplies to Europe - and hinted strongly that Nord Stream 2 was the best way to do it.