Energy bills for typical dual fuel households are predicted to rise by 13% from July, reaching £1,850 annually. This increase, forecast by Cornwall Insight, is partly attributed to the ongoing Middle East conflict and its impact on wholesale energy markets.
Price Cap Increase
The current price cap of £1,641 annually is set to increase by £209, with Ofgem announcing the new cap on 27 May. Experts warn of a potential 'payment shock' in October as energy demand rises, with forecasts suggesting similar high cap levels.
Government Response
There are growing calls for the Government to outline specific support measures for vulnerable households ahead of the winter. The increase comes amid broader concerns about the cost of living crisis.
Cornwall Insight's analysis highlights that the Middle East conflict has driven up wholesale gas and electricity prices, contributing to the cap rise. The consultancy expects the cap to remain elevated through the autumn, with a slight decrease possible in winter if wholesale markets stabilise.
Consumer groups urge households to prepare by switching tariffs, improving energy efficiency, and seeking available government support. The warm home discount and other schemes may be expanded, but no official announcement has been made.
