Energy prices are expected to rise again later this year as wholesale costs begin to increase after a period of relative stability.
Wholesale energy prices have started trending upwards again due to a mix of global supply pressures and seasonal demand changes. In the UK, these costs directly influence the energy price cap, which is reviewed by Ofgem every few months. Even modest increases at the wholesale level can feed through into higher household tariffs.
This means households could face higher energy bills heading into winter, particularly if current government support schemes are reduced or removed. While the increase may not be immediate, any upward movement in the price cap typically results in noticeable changes to monthly direct debits and overall annual costs.
Watch for Ofgem’s next price cap announcement and any government updates on energy support, as these will determine how much bills actually increase.
Sources
Reuters / Ofgem