UK Energy Bills to Rise 13% Amid Middle East Conflict Impact

UK households are set to experience the largest increase in energy bills since 2023 due to the ongoing conflict in Iran, which has driven up wholesale gas and electricity prices. According to Jin10, the UK energy regulator Ofgem announced on Wednesday that the energy price cap will rise by 13% to £1,862 starting July 1. This cap is updated quarterly, and the previous pricing round used market data from before the escalation of the Middle East conflict, making this the first adjustment to fully reflect the recent geopolitical turmoil. Since the conflict began, UK near-term gas futures prices have surged by over 40%, while electricity contract prices have increased by nearly one-third. Energy consultancy Cornwall Insight forecasts another rise in UK energy bills in October and warns that even if the conflict ends swiftly, prices are unlikely to return to April levels due to infrastructure damage and prolonged disruptions in energy supply.