UK Energy Bills Set to Soar 25% Amid Iran Conflict
UK households are facing a significant increase in energy bills, forecasted to jump by approximately 25% in January due to rising wholesale gas and electricity prices. This surge is attributed to the ongoing conflict in Iran, which has disrupted oil and gas supplies from the Persian Gulf.
According to forecasts from Bloomberg Economics, this increase will push UK inflation above 4% next year, double the Bank of England's target. The energy price cap, set by regulator Ofgem, is expected to rise by about £427 (RM2,343.28) to around £2,150 a year for the average household.
This increase would bring bills close to the £2,500 cap introduced after Russia's invasion of Ukraine in 2022. The government had subsidized the difference at that time, costing them approximately £21 billion.