Typical energy bills will rise by about £200 from July 1 as a result of Donald Trump’s war in Iran.
Announcing a 13% rise in the energy price cap, regulator Ofgem said on Wednesday: “This increase is as a result of higher wholesale gas prices, caused by the ongoing conflict in the Middle East.”
Ministers warned that bills could increase even higher in the autumn if Trump’s conflict continues.
Customers will see a smaller price increase in July of around 5% on their electricity bills compared to gas bills, which are rising by 24%, Ofgem said.
Based on the energy use of a typical domestic household, from July the price cap will rise by £18 a month for the average household using both electricity and gas if this level was sustained for a year.
The current price cap for a typical household paying by direct debit for gas and electricity is £1,641.
Ofgem chief executive Tim Jarvis said: “Today’s price change reflects continued volatility in global energy markets. This means higher wholesale gas prices, driven by ongoing conflict in the Middle East, is impacting the price we pay for energy.
“We understand many will be concerned about rising prices. While energy use typically falls over the summer months, there are still practical steps households can take to manage costs, including exploring fixed tariffs or changing their payment method. Smart meter customers can also take advantage of half price or cheap electricity at the weekends.
“While our energy supplies remain secure, the best way to limit this exposure is by investing in our energy network. That’s why we’re unlocking the funding needed for the biggest transformation of our lifetime to deliver a system that is secure, resilient and works for consumers across Great Britain.”
Treasury minister Dan Tomlinson, MP for Chipping Barnet, also firmly blamed Trump’s foreign policy for inflicting higher bills on millions of households in the UK.
“We are seeing the impact of the Iran conflict, a war that we didn't start and didn't want to get the UK wrapped up in,” he told Times Radio.
“We are seeing that wash up on our shores that will have an impact on prices, on the cost of living, and that's why we're taking lots of action as a Government to try and support people, but also to make sure we do that in a proportionate way.”
Sir Keir Starmer has angered Trump by refusing to allow US planes to use UK bases for offensive air strikes on Iran.
The crisis has deepened as Tehran has effectively closed off the Strait of Hormuz, delivering a record shock to the oil market.
The US president has repeatedly claimed that the key strait, though which a fifth of the world’s oil and liquified natural gas is transported, is about to be reopened.
But Iran has rejected many of Trump’s claims and is demanding oil tankers and other ships pay a levy to pass through the strait.
