Millions of households across England, Scotland and Wales are facing another major cost-of-living blow after Ofgem confirmed the energy price cap will rise by 13% from July 1.
The increase means a typical dual-fuel household will see annual bills climb from £1,641 to around £1,850 - an extra £209 a year.
Families are now being warned to brace for a “painful winter” as global tensions linked to the Iran conflict continue to drive gas and oil prices higher.
The energy price cap limits how much suppliers can charge per unit of gas and electricity, but households still pay based on how much energy they use.
Experts say the full impact may not be felt until colder weather arrives later in the year, when heating demand surges.
Analysts at Cornwall Insight believe prices could remain stubbornly high into October even if tensions in the Middle East ease soon, because of ongoing disruption to global energy supplies and damage to infrastructure.
The latest rise comes after Iran threatened shipping through the Strait of Hormuz - one of the world’s most important oil and gas routes carrying around a fifth of global supply.
While households were given some relief earlier this year through Government measures that helped cut April bills by 7%, campaigners say support is nowhere near enough for what could be coming next.
Consumer groups are now urging ministers to introduce emergency help before winter hits.
Simon Francis, from the End Fuel Poverty Coalition, warned: “Households need reassurance and support, not a summer of suspense.
“That means the Government must act before winter to spell out what support will be available.”
Chancellor Rachel Reeves said the Government was “ready to act” if conditions worsen later this year, but stopped short of announcing fresh energy bill support measures.
The Government’s current cost-of-living package includes cheaper attraction tickets during the summer holidays, free bus travel for children in England during August and an extension of the 5p fuel duty cut.
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But economists warn rising energy and petrol costs are already damaging consumer confidence and squeezing household spending.
Martin Beck, economist at WPI Strategy, said households are becoming increasingly cautious as they prepare for another spike in bills.
With winter still months away, many families now fear the worst may be yet to come.
Why is gas going up so much?
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.”
Customers will see a smaller price increase 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.
Gareth Kloet, expert at Go.Compare Energy explains: “Wholesale gas prices are the main driver behind today’s energy price increase.
"With the Iran war ongoing, gas prices are continuing to climb, and this in turn means UK households face rising costs.
"Even if you use electricity only, and not gas, you will see price increases as the UK generates a significant portion of its electricity through burning natural gas."
The current price cap for a typical household paying by direct debit for gas and electricity is £1,641.
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