EDF Energy has warned that UK households could see energy bills remain "stubbornly high" for the next four years, with prices potentially staying elevated until the end of the decade. The warning comes ahead of the latest energy price cap announcement, which is due on Wednesday morning.
The company said geopolitical events meant long-term outlooks were largely negative, despite short-term relief from government interventions. Its modelling found that the period until 2030 would likely be "highly sensitive" to further shocks, following major instability in recent months linked to the Iran war.
Concerns Over Affordability
A spokesperson for EDF Energy said the crisis could leave "too many households" unable to "afford the energy they need". They told Sky News: "For too long have we responded winter-to-winter, one crisis after another, from one set of voluntary commitments and energy support schemes to the next."
"We need targeted long-term solutions to improve the affordability of energy for those most in need, including those in debt and those with high energy needs," they added.
Price Cap Rise Expected
Ofgem will reveal the level of the annual energy price cap for the three months from October to December for a typical household using gas and electricity in England, Scotland and Wales on Wednesday morning. Forecasts suggest that households will see their bills rise by another 4% to the equivalent of £1,729 in the latest hike, as the conflict in the Middle East continues to push up wholesale energy prices.
Government Response
Energy Secretary Miatta Fahnbulleh said ministers are looking at "a range of support" for vulnerable households and working with Ofgem to examine "how these fixed costs could be recovered in the fairest way". She added that she understood "why people are worried and frustrated about energy bills" and pledged that Andy Burnham's Government would do "everything we can to make them more affordable".
