The Office for Budget Responsibility predicts a seven per cent rise in energy costs for families in winter this year and a three per cent rise the year after.
Average bills are currently £1,420 per family for gas and electricity, signalling an increase of £99 is on the way this year followed by a £46 rise in 2014.
The estimates were released along with George Osborne’s Budget as part of calculations about inflation.
The independent economic watchdog said higher energy costs would contribute to the rising cost of living, mostly driven by rising wholesale electricity and gas prices.
It said green taxes and other environmental policies would probably add two per cent to electricity bills and 0.5 per cent to gas bills annually until the year 2020.