Ministers urged to act as households in Great Britain face energy bill ‘anxiety’
- company Cornwall Insight
- company Ofgem
- location Great Britain
- location Iran
- location Middle East
- location UK
- person Craig Lowrey
- person Rachel Reeves
Ministers face pressure to reduce utility bills as households in Great Britain experience energy cost 'anxiety' [1]. The typical dual-fuel bill is forecast to rise by nearly 13% this summer [1]. The consultancy Cornwall Insight forecasts the annual energy price cap will climb to almost £1,900, adding £209 to household costs [1]. From July, the unit price of electricity is expected to rise to 26.03p per kilowatt hour, while gas will rise to 7.16p/kWh [1]. The increase is partly linked to geopolitical tensions that have doubled UK gas market prices [1]. Campaigners expressed disappointment at the lack of immediate government action. "We had hoped that the predictions of a huge rise in the price cap could have been the moment for ministers to show they are prepared to go further and faster in their determination to bring down bills," said Simon Francis of the Fuel Poverty Action Campaign [1]. Chancellor Rachel Reeves has announced the Treasury is working on contingency plans, but any support would be "targeted and temporary" [1]. The regulator, Ofgem, is considering lowering its assumptions for average household energy use, which could make the new cap appear similar to the current one despite higher unit rates [1]. The government has stated that tackling the affordability crisis is its top priority, arguing the UK must transition to "clean, homegrown power" to escape the "fossil fuel rollercoaster" [1]. This reliance on volatile international energy markets has long been a vulnerability. The UK's domestic energy options have been constrained, with high-volume hydraulic fracking effectively banned after a 2019 high court ruling [6]. Meanwhile, renewable sources like solar power are growing, contributing around 6.4% of the UK's annual power generation in 2025 and providing over 30% of power on sunny days [8]. However, this transition has not yet shielded consumers from global price shocks. The Treasury has insisted it is too soon to act on winter support, as the scale of price increases depends on factors like a potential US-Iran peace deal reopening the Strait of Hormuz [1].
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