Typical annual household energy bills in the UK could increase by £332 in July, according to Cornwall Insight, an energy consultancy.
This forecast is based on the surge in oil and gas prices due to the ongoing US-Israel war on Iran. The energy regulator Ofgem will set the July cap on energy bills for households on 27 May.
Cornwall Insight's latest forecast predicts that a dual-fuel household using a typical amount of gas and electricity would pay £1,973 a year, up from the current £1,641, under Ofgem's price cap for July to September.
Energy Price Cap
The energy price cap, set by Ofgem every three months, covers about 19 million households in England, Wales, and Scotland. It fixes the maximum amount customers can be charged for each unit of gas and electricity on a standard variable tariff.
As reported by the BBC, wholesale energy prices jumped in the first three weeks of March, but the final cap will also depend on what happens to prices in the remaining 10 weeks before the end of May.
Government Support
Chancellor Rachel Reeves told the Times that help would be targeted to protect poorer households, with the Treasury drawing up different options. In 2022, the Government provided a package of support that applied to every bill payer, costing more than £35bn.
Global Response
The International Energy Agency suggests measures to reduce energy consumption, such as reducing speed limits and allowing more working from home. Many countries, including Bangladesh and Thailand, have introduced measures to limit air conditioning use and reduce energy consumption.
IEA executive director Fatih Birol said addressing demand is a critical and immediate tool to improve affordability and support energy security, and that the menu of demand-side measures could help shelter consumers.
