Thousands of UK households could see energy bills climb to as high as £2,200 a year as global conflicts continue to drive up gas prices. The surge is predicted by EDF in a new report seen by The Times, which forecasts a 27 per cent rise.
This would see Ofgem's price cap increase from £1,723 a year now to a record high of £2,192 a year in January. The prediction comes as fresh attacks between the US and Iran have spiked gas prices to a new four-year high as fears continue to grow over supplies.
Record high prices forecast
Households are expected to see prices hit a record high of 11.13p/kWh in January, according to the EDF report. The previous record was 10.33 p/kWh at the beginning of 2023, triggered by Russia's invasion of Ukraine.
The price cap is updated by Ofgem, the independent energy regulator, every three months as it assesses the state of the market. It limits what gas and electricity suppliers can charge customers based on the costs they are facing.
Further rises expected in April
The price of gas and electricity is expected to rise again in April. A spokesman for EDF told The Times: "Rising wholesale gas prices are once again pushing up energy bills and the increases forecast this winter are worsening. Additional support for those least able to pay, alongside tackling the growing problem of energy debt, is essential for this winter.
"Longer term, with 70 per cent of the UK's total energy consumption still coming from oil and gas, we need to electrify the economy more quickly to improve resilience to future shocks and ensure we utilise the homegrown electricity being built."
Budget pressure grows
It comes ahead of Chancellor John Healey's budget on Wednesday. Brits are facing soaring energy costs, and fears are spreading about staying warm this winter.
The New Economics Foundation has urged Healey to find £6bn to expand energy support so every household is protected from the expected price rises.
