Market News

Energy bills are expected to rise by more than £300 this summer as the Middle East conflict pushes up wholesale natural gas prices. 

Leading forecaster Cornwall Insight has updated its prediction for Ofgem's July price cap from £1,807 to £1,973. 

That's a rise of £332 from April's cap of £1,641. 

The cap is the typical sum most households pay for gas and electricity when paying by direct debit, so if you use more, you'll pay more. 

Wholesale gas prices - a driver of UK electricity costs - have spiked since the US and Israel began bombing Iran.

Dr Craig Lowrey, principal consultant at Cornwall Insight, said: "Due to the nature of the cap methodology used by Ofgem, even if wholesale prices quickly return to pre-conflict levels, some of this recent volatility will be baked into the July 2026 cap. 

"The ultimate scale of any increase will depend on how long the disruption continues, and while the cap can shield consumers from short term fluctuations in the market, it cannot offset a sustained rise in wholesale market prices."