Ministers urged to curb energy costs as Great British homes face 13% bill surge

1d ago · UK · primary source: theguardian.com

Households in Great Britain will see their energy bills rise by 13% from Wednesday, as the quarterly price cap climbs to the equivalent of £1,862 a year, intensifying pressure on ministers and the incoming prime minister to intervene [1]. The increase, confirmed by regulator Ofgem, comes as unpaid energy bills have climbed by £240m in the past three months to reach an all-time high of almost £4.8bn [1]. The surge in wholesale energy prices has been driven by the war in Iran, which has disrupted oil and gas shipments through the Strait of Hormuz for the past four months [1][2]. The conflict has been characterized by the International Energy Agency as the "largest supply disruption in the history of the global oil market" [2]. Andy Burnham, who appears set to become the next prime minister, will face immediate calls to tackle high energy bills upon taking power [1]. The chancellor, Rachel Reeves, has previously ruled out offering the universal energy support provided by Liz Truss’s government in 2022 [1]. James Mabey, a policy analyst at National Energy Action, said: “The consequences of energy debt include cold homes, rising anxiety and impossible choices about essentials. The right response is to scale debt relief” [1]. Nigel Pocklington, chief executive of the supplier Good Energy, said: “Rising energy bills are becoming a financial nightmare for millions of households across the UK, with many people unsure how they’re going to keep up with the current payments, let alone rising costs” [1]. Good Energy has proposed a plan that, combined with recent government measures to reduce bills by £150 a year, could cut household costs by £270 annually [1]. The proposal would cost the Treasury about £10.1bn and save the typical bill payer £76 a year, while vulnerable households would save £376 a year [1]. The company has also joined calls for the government to break the link between expensive gas power and the overall electricity market price by taking gas plants out of the market and into a strategic reserve [1]. Separate analysis by Greenpeace and consultants at Stonehaven indicates the plan could save up to £60 a year for households and could be delivered within two years [1]. Pocklington added: “The next prime minister must set out a clear plan for how Britain will move away from high gas prices and bring bills down for good” [1]. The current crisis echoes the 2021–2023 global energy crisis, which caused varying effects in different parts of the world [3]. The Strait of Hormuz closure has forced QatarEnergy to declare force majeure on all exports, and Brent Crude surged past $120 per barrel [2]. The resulting supply shock has placed renewed focus on the energy transition, which aims to reduce greenhouse gas emissions by phasing down fossil fuels and shifting to low-carbon electricity [6]. A government spokesperson said: “We have taken £150 of costs off energy bills for the years ahead and extended the warm home discount to around 6 million households. We are going further and faster to move on to homegrown energy we control, including taking decisive action to break the influence of gas on electricity prices, to better protect households from energy crises” [1].

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Background sources we checked (8)
  • en.wikipedia.org ↗ The 2026 Iran war, including the closure of the Strait of Hormuz, has led to what the International Energy Agency has characterized as the "largest supply disruption in the history of the global oil market". The conflict has echoed the 1970s energy crisis through acute supply sho…
  • en.wikipedia.org ↗ The Global energy crisis (2021–2023) has caused varying effects in different parts of the world.…
  • en.wikipedia.org ↗ Keir Starmer's tenure as Prime Minister of the United Kingdom began on 5 July 2024 when he accepted an invitation from King Charles III to form a government, succeeding Rishi Sunak of the Conservative Party, and will conclude upon the appointment of his successor. As prime minist…
  • en.wikipedia.org ↗ On April 12, 2025, Iran and the United States began a series of negotiations aimed at reaching a nuclear peace agreement, following a letter from US president Donald Trump to Iranian supreme leader Ali Khamenei. Trump set a 60-day deadline for Iran to reach an agreement. After th…
  • en.wikipedia.org ↗ An energy transition (or energy system transformation) is a major structural change to energy supply and consumption in an energy system. Currently, a transition to sustainable energy is underway to limit climate change. Most of the sustainable energy is renewable energy. Therefo…
  • en.wikipedia.org ↗ The Office of Gas and Electricity Markets (Ofgem) is the government regulator for the electricity and downstream natural gas markets in Great Britain. It was formed by the merger of the Office of Electricity Regulation (OFFER) and Office of Gas Supply (Ofgas). Ofgem's governing b…
  • en.wikipedia.org ↗ Good Energy Group PLC is a British energy company based in Chippenham, Wiltshire that provides services in the electrification of transport and decentralised renewable energy generation such as domestic solar panels. The company is also an energy retailer, and built a portfolio o…
  • en.wikipedia.org ↗ OVO Energy is an energy supplier based in Bristol, England. It was founded by Stephen Fitzpatrick and began trading energy in September 2009, buying and selling electricity and gas to supply domestic properties throughout the UK. By June 2017, OVO had 680,000 customers, an increa…

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