- UK households will see annual energy bills rise by £221 from 1 July, pushing the average yearly cost to £1,862 due to a 13 per cent increase in Ofgem's price cap.
- This significant rise was initially driven by soaring global energy costs, exacerbated by the Middle East conflict and Iran's blockage of the Strait of Hormuz.
- However, an interim peace deal has led to the reopening of the vital shipping route, contributing to a reduction in oil and natural gas prices.
- Consequently, analysts at Cornwall Insight now anticipate the energy price cap will remain relatively stable in October, easing fears of further increases before winter.
- Despite this, record energy debt of £4.79 billion was recorded to March, prompting calls from Good Energy for market reforms to lower bills and incentivise clean energy.
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