Energy Price Cap Set for 4% Hike Amid Soaring Global Prices

The energy price cap in Britain is expected to rise by 4% from this October, leading to a three-year high in household fuel bills this winter.

According to analysis by Cornwall Insight, the forecast quarterly price cap would be £1,729 per year for the last three months of 2026, surpassing the previous peak of £1,940.69 set in July.

The increase is largely due to soaring energy market prices from the Middle East and increased use of expensive gas in power plants during heatwaves across Europe.

Cornwall Insight's principal consultant, Craig Lowrey, stated that 'moments like this are the strongest argument for reducing Britain's reliance on volatile international gas.'