U.K. Energy Price Cap Forecast to Rise £209 from July

Cornwall Insight has revised its forecast for Ofgem’s energy price cap, projecting an annual level of £1,850 for a typical dual-fuel household between July and September. This represents a £209 increase, or 13 percent, from the current cap of £1,641 set for April. The consultancy had previously estimated a 12 percent rise.

Wholesale energy markets have remained volatile since the end of February, when the Middle East conflict began. Energy costs rose after Iran blocked the Strait of Hormuz shipping route, which carries about one-fifth of the world’s oil and gas. Cornwall Insight had at one point projected a possible surge of £332, bringing the annual cap to £1,973.

Ofgem will announce the next price cap on May 27. The regulator adjusts the cap every three months. Simon Francis, co-ordinator of the End Fuel Poverty Coalition, said households already in energy debt or struggling to pay heating bills could face a difficult winter if prices remain high when demand rises in the autumn.

He added that households need reassurance and support rather than continued uncertainty over summer months.