A crisis is coming for UK energy prices and this is what has to be done

We need to target our response by replacing price caps with a new system of free basic energy'

• Ditch price cap for free basic energy' plan to help poorest, report says

The word crisis" is often overused. But when it comes to the outlook for energy prices, it is exactly right. By October, the annualised energy price cap for a typical household paying their bills by direct debit will have trebled to more than 3,500 in 18 months.

Fast forward to next April and it's expected to rise again, to 6,600, before remaining at about 5,900 for the rest of 2023. Next spring a typical family could be paying 500% more than they were before the pandemic, and the UK's overall annual household energy bill will have risen from around 30bn to more than 180bn in just two years. With the costs of energy permeating the wider economy, headline inflation is expected to exceed levels not seen for more than 40 years.