As conflict in the Middle East continues and Qatari production of LNG gas unlikely to restart soon, analysts at Cornwall Insight expects that energy bills will increase from 1 July by 10% to around £1,800 for the average household.
Members of the End Fuel Poverty Coalition predict that this will be at the lower end of predictions, if the conflict is not resolved in the coming days. After falling back from early morning extreme highs during trading yesterday, gas prices are sitting 26% up year-on-year (as at 0930 5 March).
A spokesperson for the End Fuel Poverty Coalition commented:
“The latest projections are devastating for households who had been expecting some relief on energy bills.
“Summer normally brings some respite for households because wholesale prices tend to ease as heating demand falls. So the prospect of bills rising by around 10% in July is a worrying sign that global tensions are once again feeding directly into energy costs.
“If these forecasts prove correct, the increase would wipe out the savings delivered by the Budget and pile even more pressure onto families already struggling. Energy debt is already at record levels, and millions of people remain in cold, damp homes after years of high bills.
“The deeper problem is that the UK is still dangerously exposed to volatile fossil fuel markets. As long as our energy system remains tied to global gas prices, shocks like this will continue to hit household finances.
“At the same time the energy industry stands to benefit from the crisis. It’s obscene that as bumper profits are predicted from the fresh energy crisis, some are calling for an early end to the Windfall Tax.
“Ministers must ensure the system works for consumers, not just for the fossil fuel giants, and deliver more homegrown renewables, better insulated homes and fairer energy pricing.”