The energy price cap could rise to around £2,800 in October, Ofgem’s chief executive has said, an increase of over £800 on the current limit.
The cap is the maximum price that suppliers in England, Wales and Scotland can charge households.
At the moment it is £1,971. Last October the cap was £1,277.
Speaking to MPs on Tuesday, Jonathan Brearley said the surge in energy prices was “very distressing” for people but warned they were set to rise even more.
“I am afraid to say conditions have worsened in the global gas market since Russia’s invasion of Ukraine,” he said.
“Gas prices are higher and highly volatile. At times they have now reached over 10 times their normal level.”
He added: “We are expecting a price cap in October in the region of £2,800.
“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.”
Boris Johnson has been under pressure from Labour and many backbench Tory MPs to to more to help people cope with rising prices.
The prime minister has said there would be further help to deal with the cost of living crisis, but has yet to set out what that would be and when.