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UK warned of higher winter gas bills as storage stays low
European benchmark gas hit more than €75 per MWh this week, and the BBC cites forecasts that Ofgem's price cap rise in October may be followed by another 9% increase in the new year.
Households across the UK are being warned to expect higher energy bills this winter as European countries scramble to rebuild natural gas storage before colder weather arrives, according to BBC Business.
The outlet reports that wholesale gas prices are already at three-year highs, with Europe’s benchmark topping €75 per MWh on Wednesday and UK gas prices this week rising above 185 pence per therm, levels last seen in late 2022.
BBC Business links the pressure on gas to low storage levels and uncertainty about supply routes, noting that renewed fighting has raised fears the Strait of Hormuz could remain closed longer, with Capital Economics estimating reopening would not begin until early 2027.
The report says higher wholesale prices flow through to household bills via the regulator Ofgem’s price cap, which rose in July and is set to increase by 4% in October, leaving a typical household paying £1,723, while Cornwall Insight forecasts domestic energy prices could rise a further 9% in the new year.
Latest closeNat gas $3.008 ▲3.6%