British ministers are facing growing calls to reduce rising energy bills as market analysts forecast a nearly 13 percent increase in typical household costs this summer.
Consultancy Cornwall Insight projects that the quarterly energy price cap, enforced by regulator Ofgem, could rise from the current £1,641 to approximately £1,850 per year for a typical dual-fuel household.
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The official announcement is expected on Thursday.
The projected increase follows a doubling of UK gas market prices earlier this year after the outbreak of the Iran war, which closed the Strait of Hormuz and spiked global oil and gas costs.
From July 1, the unit price of electricity is expected to rise to 26.03p per kilowatt hour, while gas will rise to 7.16p per kilowatt hour.
This exposes households to elevated heating costs heading into winter.
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Government Response and Criticism
To mitigate the broader cost of living crisis, Chancellor Rachel Reeves announced a "Great British summer savings" package that reduces VAT on attraction tickets and children's meals, alongside lowered import tariffs on selected food items.
The Chancellor noted that Treasury officials are working on targeted and temporary contingency plans ahead of winter to protect vulnerable citizens if market conditions worsen significantly.
Industry campaigners and consumer groups expressed disappointment over the lack of immediate domestic energy support. They warned that delayed state intervention is causing widespread financial anxiety among families.
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Ofgem is currently reviewing the energy price cap structure to assess average household consumption metrics before the mandatory new rates take effect on July 1.
