Archive · 26 Aug 2026
War-Driven Gas Costs Set UK Energy Bills Higher
UK households are expected to pay more for energy from October.
The energy regulator, Ofgem, said the price cap will rise by 4%.
This means a typical yearly gas and electricity bill will be about £1,723.
The increase is expected to cost an average household around £5 more each month.
Ofgem said a conflict in the Middle East has pushed up gas prices.
Gas supplies have also been affected by the effective closure of the Strait of Hormuz.
Prime Minister Andy Burnham plans to remove VAT from electricity bills.
However, Ofgem says expensive gas could mean people do not feel the full benefit of that tax change.
Gas prices are still lower than during the 2022 energy crisis.
Ofgem says the energy price cap will rise 4% in October.
The increase will add about £5 per month to an average household bill.
A typical annual gas and electricity bill will reach roughly £1,723.
Ofgem attributed the rise partly to higher gas prices linked to the Middle East conflict and disrupted Strait of Hormuz supplies.
Prime Minister Andy Burnham plans to remove VAT from electricity bills, but Ofgem warns high gas prices may offset some savings.
- Who
- Ofgem, UK households, and Prime Minister Andy Burnham.
- What
- Ofgem announced a 4% increase in the energy price cap, raising typical annual gas and electricity bills to about £1,723.
- When
- The increase and planned electricity VAT removal are due to take effect in October.
- Where
- The changes affect households in the UK; gas supply disruptions involve the Strait of Hormuz and the wider Middle East.
- Why
- Wholesale gas prices have risen amid the ongoing Middle East conflict and disruption to supplies.
- Price-cap change
- The energy price cap will increase by 4% in October.
- Typical annual bill
- About £1,723 for gas and electricity.
- Monthly impact
- Around £5 more per month for the average bill.
- VAT policy
- Andy Burnham plans to remove VAT from electricity bills from October.
- Wholesale gas prices
- Ofgem says prices remain high because of global events.
- 2022 comparison
- Gas prices remain well below levels seen during the 2022 energy crisis.
- Recent inflation
- UK annual inflation reached 2.9% in July, with a 13% energy-cap increase cited as a major driver.