British households are facing a fresh increase in energy costs this summer, with bills expected to rise by £288 a year from July.
Forecasts from Cornwall Insight indicate the Ofgem price cap will climb to £1,929 for a typical dual fuel household.
This represents an 18 per cent increase from the current April level of £1,641 per year.
The projected rise would add around £24 a month to bills for customers of major suppliers including British Gas, EDF, E.ON, OVO Energy and Octopus Energy.
The forecast comes shortly after households saw a seven per cent reduction in bills from April 1, when prices fell by £117 annually.
Energy analysts said a July increase now appears highly likely.
Craig Lowrey, principal consultant at Cornwall Insight, said: "A rise in July is pretty much unavoidable, but how high prices go remains to be seen."
Rising wholesale energy costs during March, linked to tensions involving Iran, have fed into the price cap calculation.
Energy bills to rise £288 as Ofgem price cap forecast to jump to £1,929
|GETTY
Analysts said there is limited expectation that prices will fall back significantly in the near term.
Mr Lowrey said: "There is some relief in the timing, summer is when energy demand is at its lowest, which should soften the impact on household energy expenditure."
He warned that if wholesale prices remain elevated, the October price cap could have a greater effect on household finances.
The End Fuel Poverty Coalition described the expected increase as a “Trump Tax” on households.
LATEST DEVELOPMENTS
The coalition is labelling the Middle Eastern price shock as the 'Trump tax' on British bills
|GETTY
Simon Francis, the group’s coordinator, said: "Households are staring at another energy bill shock after a brief fall in prices from April 1."
He added: "This represents a £288 'Trump Tax' added to energy bills because of the impact of the conflict in the Middle East on oil and gas prices."
Mr Francis warned the rise could worsen financial pressure on households already struggling with energy debt.
He said: "For the millions of households already in energy debt, this will be a real worry and risks pushing more people into crisis."
The coalition said vulnerable households, including those off the gas grid and those using heat networks, are likely to be most affected.
Energy consultancy Cornwall Insight forecasts that typical annual household bills could rise by £288 from July
| GETTYIt has called on ministers to use windfall tax revenues to provide targeted support.
Mr Francis urged the Government to take "faster action on energy debt" and prepare further measures if prices rise again.
He added that longer-term changes are needed to stabilise costs.
"The only way to break this cycle is to ramp up energy efficiency, roll out homegrown renewables and fix electricity pricing so households see the benefit of cheaper clean power."
Ofgem is expected to confirm the new price cap level by May 27.
The changes will affect households across England, Wales and Scotland on standard variable tariffs.