Energy bills 'to rise by almost a fifth' in just three months

Ofgem’s energy price cap is updated every three months (Picture: Justin Tallis/AFP via Getty Images) Household energy bills will increase by almost a fifth when the price cap is next updated in July, according to energy market experts. Cornwall Insight has published its latest forecast for the energy price cap, ahead of a fall in gas and electricity bills coming into effect tomorrow. The April price cap was set at £1,641 per year for a typical UK home by energy regulator Ofgem before the war in Iran resulted in a spike in costs. That spike will likely instead be taken into account when the fresh cap is announced in a matter of weeks, ahead of it coming into effect in July. According to Cornwall Insight, that will mean an increase of £288 or 18% in annual bills. In a post on X, the consultancy firm said ‘infrastructure damage and continued disruption to marine traffic through the Strait of Hormuz are limiting the potential for any meaningful wholesale price fall’. It continued: ‘As a result, some of the increase is already effectively baked in. ‘A rise in July is pretty much unavoidable, but how high prices go remains to be seen.’ Martin McCluskey, the Minister for Energy Consumers, said: ‘Action taken by this government on bills will see the energy price cap coming down from tomorrow. This reduction is fixed until the end of June, protecting millions of households with lower bills this spring. ‘Tackling the affordability crisis is our number one priority and I know many families will be thinking about how events in the Middle East might impact the cost of living at home. ‘We will continue to fight people’s corner through this crisis and, as the Energy Secretary has said, if it’s necessary to intervene, we will.’ Got a story? Get in touch with our news team by emailing us at webnews@metro.co.uk. Or you can submit your videos and pictures here. For more stories like this, check our news page. Follow Metro.co.uk on Twitter and Facebook for the latest news updates. You can now also get Metro.co.uk articles sent straight to your device. Sign up for our daily push alerts here.