Price cap forecast to hit three-year high

Domestic bills are forecast to rise by 4% from October, their highest level since July 2023.

Cornwall Insight predicts a typical consumer’s annual cap is expected to rise to £1,729, from the current £1,663.

It said the increase is being driven by ongoing uncertainty over the US-Iran conflict, with wholesale prices for the coming winter having risen to their highest level in almost four years.

The upward pressure is being compounded by the ongoing heatwave across Europe increasing gas demand for power generation to meeting air conditioning and cooling demand.

Dr Craig Lowrey, Principal Consultant at Cornwall Insight, said: “Rising energy bills aren’t welcome at the best of times, but with winter approaching, this latest hike will hit struggling households especially hard.

“Driven by international conflict rather than domestic policy, it is a stark reminder that our energy bills remain tied to events thousands of miles away.”