Man installing a boiler (file image) (Image: Getty Images)
While Britons are enjoying the Spring heatwave, experts have issued a warning that millions could face a dramatic surge in energy bill costs this summer. The situation could deteriorate further when colder weather arrives.
Cornwall Insight has forecast that the household energy price cap will climb by £209 annually from July, driving the average yearly dual-fuel bill from £1,641 to approximately £1,850.
It is understood that this increase, representing a 13% jump over three months, will predominantly be fuelled by escalating wholesale energy prices stemming from the Iran conflict. Experts have suggested that prices may stay elevated throughout autumn and winter.
The Middle East crisis has triggered turmoil across global energy markets. The US and Israel conducted joint strikes on several crucial Iranian sites on February 28, with Iran responding by targeting key locations across the region and shutting down the vital Strait of Hormuz trade route.
Roughly 20% of globally traded oil passes through the strait and its closure has triggered spikes in fuel costs worldwide.
Person puts towel in tumble dryer (file image) (Image: Getty)
Volatility in oil and gas prices has filtered through to UK household energy bills.
Cornwall Insight has cautioned that energy bills could climb to nearly £2,000 annually.
Craig Lowrey, principal consultant at Cornwall Insight, said forecasts had dramatically worsened in recent months.
“Over the past few months, we’ve watched our forecasts shift from showing virtually no quarter-on-quarter increase to a 13% rise in current bills – with this change due to the impacts of the Middle East conflict,” he said.
Energy consumption typically falls during warmer months, but analysts have expressed alarm about what may happen later in the year when temperatures plummet and usage surges.
Present projections indicate October’s price cap could stay near July’s heightened levels, according to Cornwall Insight’s forecast.
This means households may miss out on the typical autumn respite.
Avoiding unnecessary tumble dryer use can reduce your energy bill (stock image) (Image: Siarhei Khaletski via Getty Images)
“While households will understandably be frustrated by a rise during the summer, the bigger concern is October, when demand picks up again,” the consultancy said.
Even if hostilities ceased today, damage to infrastructure and disrupted global supply chains mean energy costs are unlikely to fall back to pre-war levels swiftly.
The UK Government is facing calls to outline emergency support measures before winter sets in.
End Fuel Poverty Coalition cautioned that millions of families already grappling with energy debt could endure an exceptionally challenging winter if costs stay elevated.
Analysts have recommended several straightforward adjustments households can implement during warmer months to enhance home energy efficiency before heating systems are required once more:
- Bleeding radiators
- Checking for draughts
- Servicing boilers
- Improving insulation
- Washing clothes at 30°C
- Avoiding unnecessary tumble dryer use
- Batch cooking meals
- Using dishwasher eco settings
Ofgem will formally reveal the next energy price cap on May 27.