HOUSEHOLDS and businesses have been left wondering how they will will pay this winter's energy bills, while an MP has warned the country could see blackouts.

Ofgem announced yesterday that the price cap on domestic energy prices will rise by 80 per cent on October 1.

That means an average domestic bill will reach £3,549 before rising again in January and April to a predicted £6,600.

Bournemouth East MP Tobias Ellwood – currently excluded from the Conservative party in parliament after being absent for a confidence vote – said there had been an “erosion of the ability to make ends meet” each time the regulator Ofgem reviewed the price cap.

“We're enjoying the sunshine now, but wait until the winter months come along and we're going to have real, real problems,” he said.

“What the country wants now is leadership. They want to see a short-term solution that's going to help with the financial pressures and then a long-term plan that's going to give us the vision and the confidence that we're going to be able to get through this."

He said a cut in corporation tax, as proposed by Tory leadership front-runner Liz Truss, "won't ripple through" to help households.

Mr Ellwood, who chairs the Houses of Commons defence select committee, said he was “deeply concerned” about reliance on energy from abroad.

“I predict if we don't resolve this in a matter of months, then there will be blackouts that we're likely to face,” he added.

Dorset hospitality businesses have been warning of the consequence of price hikes, with restaurateur Andy Lennox saying the crisis was “much harder to deal with” for many businesses than Covid.

UKHospitality chief executive Kate Nicholls said: “While the energy price cap doesn’t apply to businesses, this steep rise for already cash-strapped consumers means they’re likely to cut back on visiting hospitality venues or, worse still, stop going out altogether. Higher energy prices also affect our sector’s employees, who now face even higher energy bills.”

A YouGov survey published today found a quarter of small and medium sized businesses said their bills would be unsustainable within three months. Three-quarters of those dealing with higher bills said they would have to pass the costs on to customers.