Household energy bills could rise by around £250 a year from July as a result of the conflict with Iran, according to the industry trade body Energy UK.
The organisation has urged the Government to step up preparations to support vulnerable households, warning that higher wholesale energy prices could push bills up when the next Ofgem price cap takes effect at the end of June.
Energy UK said projections from suppliers suggest customers could face an increase of as much as £250 annually once the new cap comes into force.
Chief executive Dhara Vyas said it remains unclear how severe the impact of the Middle East conflict will be, but warned that planning ahead is essential.
“It is still too early to tell how significant an impact the conflict in the Middle East will have on British energy bills – but it is clearly sensible to prepare and ensure any intervention that might be necessary is both cost effective and directed to help those who most need it.”
The group noted that any government support package would not need to match the £35bn universal scheme introduced after the Ukraine invasion in 2022.
Instead, it estimates that a more targeted programme focused on low and lower-middle income households would cost the Treasury around £12.5bn.
Vyas added that energy bills remain higher than before the Ukraine war, while customer debt has reached record levels, increasing pressure on households.
She said identifying the most vulnerable customers would be critical for any emergency response and to ensure long-term support for those struggling with rising energy costs.
