The news of potentially another price increase will have many households worried
The price update will worry many in the UK(Image: Getty Images)
New energy forecasts predict energy prices could rise by 13% from July. The last price cap came in just before the start of the Iran war, and now, as the next price cap deadline looms, people are facing the increased fuel prices in their household bills.
The final prediction for the tariff from Cornwall Insight shows the cap is forecast to rise to £1,850.13, £209 more than the April to June forecast. Between 1 April and 30 June 2026, annual energy bills for a typical dual-fuel direct debit household in Great Britain are around £1,641.
This 13% rise will have many in the UK worried, and while we are currently heading into warmer weather and may need to turn on the heating less, this will still be a major concern for those facing fuel poverty. Especially as the conflict is still stalling in peace talks, this Winter could prove to be a particularly pricey one.
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Dr Craig Lowrey, principal consultant at Cornwall Insight: “A summer rise will be painful for households, but the bigger concern is October when household demand traditionally picks up.
“If the cap stays at a similar level as July, that is when the Government will need to think seriously about targeted support for the most vulnerable.”
Richard Neudegg, director of regulation at Uswitch.com, said: “A rise of this magnitude will be alarming, especially with higher costs forecast for the winter too. Thankfully, households can opt out of this price rise if they act now.
“The expected 13% rise in energy bills is completely avoidable. A number of fixed tariffs currently undercut the predicted price cap, some by over £200 for the average home.”
He continues by advising people that “Fixing your energy deal will not only save you money right now, but importantly will protect you from the price rises predicted in July, locking in good rates for winter and beyond. For those currently on standard tariffs, doing nothing could be a costly mistake.”
Discussing the Iran war and its impact, The Energy Saving Trust said: “Prices will change again on 1 July, but we’ll be told what these are by Ofgem on 27 May. Early forecasts by Cornwall Insights suggest prices may rise unless the situation changes.”
A government spokesperson said, “We know families will be concerned about the impact the conflict in the Middle East will have on their energy bills.
“Tackling the affordability crisis is our number one priority. The lesson of yet another fossil fuel crisis is the UK needs to get off the fossil fuel rollercoaster and onto clean, homegrown power we control.”
