HOUSEHOLD energy bills are on course for a brutal summer jump, with analysts warning the Ofgem price cap could surge to £1,973 a year in July.
Experts at Cornwall Insight say that would add £332 to the average dual-fuel bill compared with the £1,641 level expected in April, dealing another heavy blow to hard-pressed families.
The grim forecast comes as global energy markets are rocked by escalating conflict in the Middle East.
Wholesale gas prices have been sent through the roof following the closure of the Strait of Hormuz, a vital shipping lane that has effectively blocked 20% of the world’s liquefied natural gas flows.
The impact on the pumps and the pipes has been immediate and severe. Brent crude oil prices exploded by nearly 11% yesterday to hit $119 (£89) a barrel, a massive leap from the $67 (£50) price tag seen before the conflict ignited.
UK natural gas prices followed the same terrifying trajectory, spiking by 25% to 175p per therm.
This is more than double the pre-conflict average of around 80p, leaving energy suppliers with no choice but to pass the costs onto consumers.
This latest prediction marks the third time in just weeks that analysts have been forced to tear up their spreadsheets and hike their price expectations.
Just last week, it was hoped that bills would settle around the £1,827 mark, but the deepening crisis in Iran has seen those hopes go up in smoke.
Because the energy regulator sets the quarterly price cap based on average wholesale costs in the preceding three months, the current market chaos is now “baked in” for the summer update.
Under the new forecasts, electricity costs for a typical user are expected to hit £954 while gas bills will soar to £1,018.
The worsening outlook has sparked urgent calls for the Government to intervene with a “social tariff” to protect the most vulnerable from the cold.
Energy giants have also added their voices to the alarm, with experts at EDF warning that bills could remain at these painful levels for at least the next year.
