Commodities
UK Energy Bills to Soar as Natural Gas Prices Surge
UK energy bills could increase by 25-30% in Q1 2027 due to a surge in natural gas prices, according to analysts cited in a report by OilPrice.
The Middle East crisis is driving up international gas prices, which will have a direct impact on UK household energy bills. The UK operates an Energy Price Cap, which shields households from excessively high bills by limiting the price that energy utility providers can pass on to consumers.
EDF projects that Ofgem, the UK's energy regulator, will raise the energy price cap by 30% to £2,165 per year for a typical household in January-March 2027. Bloomberg Economics expects the price cap to jump by about 25%, or by £427, to around £2,150 per year.