Ofgem has warned UK households that the October energy price cap is expected to rise even further with the new cap expected to be “in the region of £2,800”.

Chief executive Jonathan Brearley told MPs their constituents can expect further rises later this year.

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Ofgem warns energy price cap will rise to £2,800

Mr Brearley told the Business, Energy and Industrial Strategy Committee: “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 prediction comes after households were hit by a huge leap of 54% in April, an increase of £693 a year to £1,971 for those on default tariffs paying by direct debit for the average household.

Mr Brearley said future scenarios could include energy prices going even higher if Russia further disrupts gas supplies.

He 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.”