UK energy bills are set to rise again in 2026, driven by global geopolitical tensions and soaring wholesale prices. Many people are wondering if their bills will increase further, what’s causing these hikes, and what the government is doing to help. Below, we answer the most common questions about the upcoming energy price changes and what you can expect in the near future.
Yes, energy prices in the UK are expected to continue rising in 2026. The main reason is the increase in wholesale gas and electricity costs, driven by ongoing conflicts in the Middle East and disruptions in global supply chains. Experts forecast that the average annual energy bill could reach nearly £1,929 from July 2026, reflecting these international pressures.
The recent rise in energy bills is mainly caused by geopolitical tensions in the Middle East, especially Iran’s blockade of the Strait of Hormuz. This has led to higher wholesale gas prices, which directly impact consumer bills. Additionally, global supply disruptions and increased demand have contributed to the upward pressure on energy costs.
Based on current forecasts, the average annual energy bill in the UK could reach around £1,929 from July 2026. However, your actual bill may vary depending on your energy usage, your supplier, and any government support measures that may be introduced to help consumers cope with rising costs.
The UK government is considering targeted support measures to help consumers cope with rising energy bills. While the current price cap remains in place until June, officials are exploring options such as direct financial assistance and giving regulators like Ofgem more powers to prevent profiteering and protect consumers from excessive price hikes.
Yes, there is potential for further government intervention if energy prices continue to rise sharply. Discussions include expanding support programs, implementing stricter regulations on energy companies, and possibly providing direct subsidies to vulnerable households to ease the financial burden caused by international conflicts and wholesale price increases.
To lower your energy bills, consider switching to a more affordable energy plan, improving home insulation, and reducing unnecessary energy use. Staying informed about government support schemes and energy-saving tips can also help you manage costs better during these uncertain times.
Consumers brace for ‘awful April’ and Iran war cost hikes, which have pushed UK’s gas market past three-year highs