Industry experts have warned energy bills could rise by 50 per cent in the new year, as gas prices continue to rise across Europe.

The rise in prices could have many knock-on effects for households, including a rise in energy bills and a greater risk of their energy supplier going bust.

Residents looking to retrofit their homes can benefit from reduced bills when their homes become more energy efficient, however, price increases can influence upfront costs and put a strain on personal finances.

Major energy suppliers have been appealing for support from the government to reduce the impact of costs on the public and businesses, warning they cannot endure the wholesale price rises.

The benchmark UK month-ahead gas price touched 470p a therm at one point in the month of December 2021. Around 10 times higher than it was in December 2020.

A number of energy suppliers went bust in 2021 due to unsustainable price rises, and have passed on customers to the other remaining energy companies.

“Other treasuries in Europe have already responded to the crisis, but in the UK, the energy sector is still asking if the chancellor knows that energy bills going up by over 50 per cent in the new year is a problem for ordinary people, businesses, and the economy.”

Emma Pinchbeck, chief executive of Energy UK speaking to the Financial Times