Millions of UK households are bracing for a huge rise in the energy cap as global gas prices soar.
Analysts are expecting UK energy regulator Ofgem to set the cap on Friday between £3,550 and £3,600 for the average household compared to £1,971 today, to come into effect on 1 October.
Experts warn the cap could increase to as much as £4,200 and then £5,300 in the new year, plunging many families into fuel poverty this winter.
By April the cap might even hit £6,823, according to one forecast published by Auxilione.
Ofgem has already amended its cap twice this year, but moving forward, is now doing so quarterly to better respond to the demands of the market.
The government is facing increasing calls to introduce radical support to help households get through the cost of living crisis, comparable to the furlough and loan schemes at the start of the pandemic.
The rise in energy bills will be a key issue for either Liz Truss or Rishi Sunak to tackle once the Tory leadership contest is over on 5 September.
On Thursday, Will Quince, an education minister, said there will be further support on top of what was announced in May.
“There is no question in my mind whatsoever, both listening to the two leadership candidates but also just looking at our economy … that the government is going to act and put in place a further package of support measures,” Mr Quince told LBC radio.
“Now, we will have to wait a couple of weeks for a new prime minister to set out their agenda alongside a new chancellor, but both leadership contenders have been clear there will be a fiscal event and more help will be coming.”
Mr Sunak already introduced some measures to alleviate the financial pressures on households in his role as chancellor, including a deduction of £400 off household energy bills, as well as a £650 one-off payment for roughly 8 million households on means-tested benefits.
Writing for the Daily Mail on Friday, Ms Truss said she would use an emergency budget next month to help families get through the crisis.
She said: “I know how hard it is for millions of Britons, and how grave concerns are about the consequences of today’s decision by Ofgem on the next energy price cap. The rest of Europe is facing the same challenge, which will loom large as winter sets in.
“If I am elected leader of the Conservative Party and prime minister, I will take decisive action on entering No 10 to provide immediate support, but will also tackle the root causes of these issues so we are never again in this difficult position. To those of you feeling the squeeze, my message is clear: I will ensure support is on its way and we get through these tough times.”
The Times said Ms Truss has already held talks with business secretary Kwasi Kwarteng and other senior members of her team about her plans.
According to Which? 93 per cent of consumers are worried about energy prices, with satisfaction at its lowest point since 2014, even before the new cap hike is announced.
Rocio Concha, Which? director of policy and advocacy, said: “The government must move quickly to increase the amount of financial support it is providing to families and households who are struggling.
“Tackling the cost of living crisis must be at the top of the new prime minister’s in-tray. Businesses should also do everything in their power to make sure customers are getting a good deal and those facing serious financial hardship are protected.”
