Energy bills to rise to nearly 4,000 a year from January

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Energy bills to rise to nearly 4,000 a year from January

The average energy bill is expected to rise to nearly 4,000 a year from January, as gas prices continue to push upwards, according to new analysis.

Energy consultancy Auxilione warned that the government's price cap, which sets bills for more than 20 million households in Great Britain, could be increased further than previously expected.

The price cap is likely to be 3,488 per year for the average household between October and December. The energy bills are currently capped at 1,971 and are a record high.

The price will go up by another 500, hitting 3,994, according to research from the company.

There are more than three months left until the price is decided, and predictions for January are still uncertain. October's prediction is likely to be more accurate.

Auxilione's forecast came less than a day after analysts at Investec predicted that October s price cap will be 3,523, with bills rising to an eye-watering 4,210 in January.

Gas prices went up after Russian state-owned Gazprom claimed it was unable to take delivery of a turbine that is vital to running one of its main pipelines to Europe.

Gazprom blamed the reduced flows to Germany through the Nord Stream 1 pipeline on the need for repairs. The Siemens 073 turbine has been repaired in Canada but is currently stranded in Germany due to the disputes.

The pipeline is only a fifth of its capacity.

With only one of the six turbines currently in operation, this puts the current 20 per cent flow rate at risk, Auxilione said on Friday.

Siemens Energy will ship the turbine at a moment's notice and provide a resident engineer to maintain it.

Concerns over similar engines number 072, 074 and 121, which all need similar overhauls in the near future, have been raised by Gazprom. The Bank of England set out on Thursday a nightmare scenario for households that were added to by the news.