"Energy analysts at Cornwall Insight now expect the next Ofgem price cap to rise to £1,837 for a typical dual-fuel household between July and September - a 12 percent increase on the current level."
"Wholesale energy prices surged after the outbreak of conflict involving Iran, with markets particularly sensitive to risks around the Strait of Hormuz, through which a significant share of global oil and liquefied natural gas is transported."
"The current cap of £1,641 was introduced in April, marking a 7 percent reduction, largely driven by government adjustments to environmental levies that reduced bills by an average of £150."
"Analysts warn that sustained geopolitical tensions could keep prices elevated well into the autumn, particularly if shipping routes remain under threat."
From July, households are expected to face a £196 annual increase in energy bills, raising the Ofgem price cap to £1,837. This represents a 12 percent increase from the current cap. Although earlier forecasts predicted a rise of up to £332, easing wholesale gas prices have moderated expectations. However, the energy market remains volatile due to geopolitical instability, particularly concerning the Strait of Hormuz. Analysts indicate that sustained tensions could keep prices high into autumn, despite recent reductions in the cap due to government interventions.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]