UK energy bills could rise by £460 a year in January
Forecasts from major suppliers suggest household costs will jump as global energy tensions and climate goals collide.
Typical UK households could see their energy bills increase by around £460 a year in January, according to forecasts from British Gas, EDF and E.ON. The rise comes as oil and gas prices soar following US and Israeli strikes on Iran in February, which effectively closed the Strait of Hormuz, according to BBC News.
The UK faces high exposure to energy shocks because gas heats most homes and sets wholesale electricity prices. The Energy and Climate Intelligence Unit and E3G reported that the last shock, following Russia's invasion of Ukraine, cost households an extra £63bn.
Energy Secretary Miatta Fahnbulleh stated that affordability is her overriding objective due to the cost of living. She noted that the UK is too exposed to global markets it cannot control and suggested homegrown clean energy as a solution.
The government recently approved the Jackdaw North Sea gas field but blocked a £1.5bn wind turbine factory proposal from Ming Yang, citing national security. Ministers did so after US lawmakers urged the UK to block the project.
A decision is expected within weeks regarding the Rosebank oil field west of Shetland. While Conservative leader Kemi Badenoch called drilling the only way to protect families from rising bills, Fahnbulleh said producing more British oil and gas would not bring bills down because it is sold on global markets.