Prime Minister Sir Keir Starmer will chair a Cobra crisis committee today amid warnings that household energy bills could soar by almost £300 this summer. The emergency meeting comes as the Iran war drives up wholesale energy costs, with average bills forecast to rise by £288 from July.
Cornwall Insight predicts Ofgem's price cap from July to September will reach £1,929 for a typical dual fuel household, an 18% increase on April's cap. Motorists are already feeling the pinch, paying £544 million extra for fuel since the US-Israeli bombing campaign began.
Iran's selective blockade of the Strait of Hormuz and attacks on Gulf states have pushed up global energy prices. A Kuwaiti oil tanker was recently attacked off the coast of Dubai, highlighting the risks to shipping in the region.
Chancellor Rachel Reeves has indicated targeted help for poorer households could be available if bills continue to rise. Energy consumers minister Martin McCluskey said: 'Tackling the affordability crisis is our number one priority and I know many families will be thinking about how events in the Middle East might impact the cost of living at home.'
Households reliant on heating oil, not covered by the Ofgem cap, have seen costs rise sharply. The average price per litre of standard grade burning oil stood at 104.1p in March, nearly double February's figure and the highest since records began in 1989. The government has announced a £53 million support package for heating oil customers.
