Families are more than €2,000 a year worse off due to soaring energy costs, new research shows.

The study by the Economic and Social Research Institute (ESRI) has found that from January 2021 to the end of April this year, energy inflation increased the cost of estimated households' consumption by an average of €21.27 per week.

This rises to €38.63 euro per week when motor fuels are included, bringing it to a total of €2,008.76 a year.

If energy prices rise by a further 25%, the ESRI estimates energy costs would increase by an average of €36.57 euro, excluding motor fuels, or €67.66 euro if petrol and diesel are included, amounting to a potential €3,518.32.

The research concluded that up to 43% of households could be at risk of energy poverty if energy bills increase by a further 25%.

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Consumers' Association of Ireland chief Dermott Jewell said: "People should be worried about the rising prices because there seems to be no letup. That figure is quite startling... because the reality it's a frightening amount of money."

The latest inflation figures show eye-watering increases for domestic energy prices over the past 12 months.

Electricity is up 41%, gas is even higher at 61% and home-heating oil has more than doubled.

Petrol is up 26% and diesel is up 41% on a year ago.

Barra Roantree, one of the authors of the report, said lower income families "were the worst casualties".

He said people living in rural areas were also being hit harder as "they tend to have larger houses and it costs more to heat them".

The ESRI said increasing welfare payments, the fuel allowance, and even lumpsum payments like the household electricity credit are better targeted at those most affected by energy inflation.

But Daragh Cassidy, of utility switching site Bonkers.ie, warned: "The ESRI's preferred measures, such as increases to welfare payments, the fuel allowance, and a Christmas Bonus-style double welfare payment would do nothing for the squeezed middle - people who may not be earning a huge amount yet qualify for little or no Government assistance."