Millions of households across United Kingdom are expected to face another sharp rise in energy bills from July as the impact of the Iran war continues to drive up global fuel prices.
Energy regulator Ofgem is due to announce its latest price cap for July to September on Wednesday, with analysts predicting a significant increase for consumers across Great Britain.
Forecasts from Cornwall Insight suggest the annual energy bill for a typical dual-fuel household could rise by £209 to £1,850 from July.
That would represent a 13% increase compared with the current £1,641 cap covering April to June.
The energy price cap limits the maximum unit cost suppliers can charge customers, although households still pay according to how much energy they use.
While warmer summer temperatures may temporarily reduce usage, experts warned the bigger concern will come later in the year when heating demand rises during autumn and winter.
Cornwall Insight said energy bills are likely to remain high even if tensions in the Middle East ease.
The consultancy warned that physical damage to infrastructure and continuing supply disruption mean prices may stay elevated into the autumn.
The latest increases have largely been driven by instability in global oil and gas markets following Iran’s move to block the Strait of Hormuz, one of the world’s most important energy shipping routes.
Around a fifth of global oil and gas supplies pass through the strategic waterway.
Pressure has been mounting on the UK government to announce extra support for vulnerable households ahead of winter.
However, Chancellor Rachel Reeves stopped short of unveiling fresh energy support measures during her recent cost-of-living announcement.
“We stand ready to act if market conditions worsen significantly later this year and I have been leading cross-Government contingency work on design of potential future targeted and temporary support for businesses,” Reeves told MPs.
Although households have not yet fully felt the impact of rising wholesale prices due to the quarterly review system, campaigners warned many families could struggle later this year.
Simon Francis said: “Households need reassurance and support, not a summer of suspense.”
“That means the Government must act before winter to spell out what support will be available.”
The government insists “tackling the affordability crisis is our number one priority” and has already introduced several support measures.
These include extending the 5p fuel duty cut, reducing VAT on attraction tickets during summer holidays, free bus travel for children in England during August and lower import tariffs on selected food products.
However, economists warned that fears over rising energy bills are already affecting consumer confidence and spending.
Martin Beck said recent retail sales figures suggested “energy pressures are biting”.
“Higher petrol prices, the prospect of an increase in household energy bills in July and weakening consumer sentiment all point to a more cautious spending backdrop,” he added.