UK homes will pay 178% more for heat this winter as Europe's energy crisis forces massive hike in price cap

• Home heating prices in the UK this winter will be nearly triple the levels from a year ago.
• A UK industry regulator raised its cap on prices starting October 1 to £3,549, or about $4,189.

UK households are facing a stiff increase in heating prices this winter, as Europe's energy crisis places a growing burden on consumers.

Industry regulator Ofgem said Friday set a cap on prices of £3,549, or $4,189, starting on October. That's up 80% from the summer and 178% from last winter.

Ofgem attributed the cap increase to continued wholesale market volatility, which has worsened since Russia's invasion of Ukraine.

"The price of energy has reached record levels driven by an aggressive economic act by the Russian state. They have slowly and deliberately turned off the gas supplies to Europe causing harm to our households, businesses and wider economy," Ofgem CEO Jonathan Brearley said in a press release. "Ofgem has no choice but to reflect these cost increases in the price cap."

The new price cap applies to roughly 24 million customers. Consumer energy bills could climb as high as £5,405 in January following the cap increase and £7,263 in April, according to a Bloomberg report citing data from Auxilione.

The jump in the UK's energy price ceiling will push a slew of already strained consumers into energy poverty. Inflation in the UK reached a 40-year high in July and has put a premium on essential consumer goods.

Meanwhile, UK Chancellor of the Exchequer Nadhim Zahawi said that "more help was on the way" in order to stem chaotic energy prices, although pressure is mounting for more government assistance.