Displaying items by tag: energy prices

Rachel Reeves has held urgent talks with senior oil and gas executives after warnings that energy bills for UK households could rise by around £500 due to the war in the Middle East. The meeting at Downing Street included representatives from companies such as BP and Offshore Energies UK, as the Government assessed the economic impact of the conflict. Rising oil and gas prices have already unsettled global markets and pushed energy costs higher. Economists warn that sustained increases could add to inflation and significantly raise household energy bills, particularly affecting lower-income families who spend a larger share of their income on utilities. Reeves has signalled she still intends to end the Energy Profits Levy, also known as the windfall tax, but may reconsider the timing depending on market conditions. Industry leaders argue that removing the tax would encourage long-term investment in the North Sea energy sector. The Government is also monitoring whether further intervention may be needed to protect households if energy prices continue to climb. See

Despite government pledges to lower the cost of living, UK energy bills remain the highest in Europe, as households face another price hike. From April to July, Ofgem’s energy price cap will increase by 6.4%, pushing the average annual bill to £1,847 - a rise of £111 per year. Although wholesale energy prices have dropped due to potential peace talks between Russia and Ukraine, Europe’s gas reserves have been depleted following a cold winter, keeping costs high. Energy firms are offering fixed-rate deals, but experts warn that locking in a contract may prevent customers from benefiting if prices fall later. With 90% of UK households still on standard variable tariffs, millions remain vulnerable to rising costs. The Government insists its plan to make Britain a clean energy superpower will bring long-term relief, but for now, families continue to struggle with rising bills.