UK energy bills to rise £221 per year for typical households due to Iran war impact on gas prices
By
Kevin Peachey
Crispy enough to crunch, soft enough to enjoy. A good bake.
Summary
Energy bills are set to rise significantly for millions of UK households due to the impact of the Iran war on global gas prices. The effective closure of the Strait of Hormuz has caused a 25% increase in global gas prices, which will be reflected in the new price cap from July to September. A typical household will pay £221 more per year under the regulator's new price cap, following a brief period of lower costs after a 7% drop between April and July.
Key quotes
· 5 pulledThe jump in costs for households is set to kick in after domestic energy bills fell by 7% between April and July, following a shake-up in charges by the government.
The cap from July to September reflects the 25% increase in the global price of gas caused by the war, particularly the effective closure of the Strait of Hormuz.
The wholesale price, paid by suppliers, makes up about 40% of a household gas and electricity bill.
Some energy suppliers have forecast that energy prices could move even higher by the autumn and winter.
A household using a typical amount of energy will pay £221 a year more, under the regulator's new price cap.
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