Suppliers pile pressure on UK government over energy bills

Energy UK has urged the UK government to take immediate action to support households struggling with soaring energy bills this winter, warning that inaction will lead to a deeper and more costly crisis. The trade body pointed out that domestic gas prices rose recently and warned of steep increases expected in January 2026.

Figures previously revealed by the BBC indicated that forecasters expect a 16% rise in domestic energy prices for 20 million households on variable tariffs governed by Ofgem's price cap. Prime Minister Andy Burnham stated that the government is considering all measures to relieve financial pressure. Households across England, Scotland, and Wales on these variable tariffs faced a 4% price increase at the beginning of October.

The 4% increase adds roughly £60 a year, or £5 a month, bringing the typical annual bill to £1,723 for households using electricity and gas via direct debit. However, consultancy Cornwall Insight forecasts that the same annual bill could climb to £1,999 in January. Energy UK acknowledged government support provided so far, including a VAT cut on electricity bills and the removal of certain levies earlier this year.

Stock photo for illustration only, not from the actual event

"We cannot afford to wait for the same scale of crisis before acting again. We must heed the lessons from that time."

Dhara Vyas

However, the trade body noted that these savings were entirely wiped out by high wholesale prices driven by international events, specifically conflict in the Middle East and shipping disruptions through the Strait of Hormuz. Dhara Vyas, chief executive of Energy UK, stated that soaring bills mirror the impact of Russia's invasion of Ukraine in 2022, adding that growing customer debt levels currently add an average of £67 a year to everyone's bills.